Permanent workers’ employment protection is relatively strong

2020 ◽  
Vol 67 (2) ◽  
pp. 139-165 ◽  
Author(s):  
Cristiano Perugini

In this paper we investigate gender wage disparities in 25 EU countries before and after the crisis, focusing on the role employment protection legislation played in shaping the gap across the wage distribution. Results of quantile regressions reveal a remarkable cross-country diversity in the size of the gap and confirm the widespread existence of glass-ceiling effects. Stricter rules for temporary contracts mitigate the gender gap, especially at the top of the distribution; stronger protection for permanent workers is found to increase the gap at the bottom of the distribution and to decrease it at the middle and at the top.


Author(s):  
Daniela Bellani ◽  
Giulio Bosio

Abstract This article reframes the debate on the consequences of flexibilization in European labour markets focusing on the unexplored impact of temporary employment on occupational wages for permanent workers. Exploiting the variation in the temps’ density within occupation and age groups across European countries between 2003 and 2010, we find that temporary contracts negatively affect occupational average wages for insiders’ workers. These results are still robust using a dynamic system based on generalized method of moments (GMM-SYS) to account for potential endogeneity issues. We also explore the existence of heterogeneity across different occupational clusters and institutional settings. Our estimates indicate that the knock-on effect is large in countries with low employment protection legislation and it is driven by occupations characterized by untechnical work logics.


2019 ◽  
Vol 72 (3) ◽  
pp. 893-914
Author(s):  
Christine Luecke ◽  
Andreas Knabe

Abstract Employment protection legislation (EPL) is an important determinant of workers’ perceived labour market prospects and also their subjective well-being. Recent studies indicate that it is not only a worker’s own level of protection that matters for individual prospects and well-being, but also that of others. We examine how such cross-effects on well-being are mediated by workers’ perceived risk of job loss and future employability. We apply a structural model to data from the European Quality of Life Survey and the OECD Employment Protection Database. Our results indicate that both permanent and fixed-term workers’ perceived employability is affected by EPL, positively for fixed-term workers and negatively for permanent workers. Stricter protection for permanent workers is positively related to fixed-term workers’ perceived risk of job loss. EPL has significant indirect (cross-)effects on life satisfaction via the mediators. There are no indications for direct, non-mediated effects.


2014 ◽  
pp. 126-140
Author(s):  
O. Mironenko

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.


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