Different Paths Towards Flexibility: Deregulated Employment Protection or Temporary Employment - A Study of Cross-National Variance on Employment Protection Legislation and Temporary Employment in 19 OECD Countries

2005 ◽  
Author(s):  
Heejung Chung
Keyword(s):  
Oecd Countries ◽  
Temporary Employment ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Protection Legislation ◽  
Cross National

scholarly journals Importance of Employment Protection and Types of Employment Contracts for Elasticity of Employment in the OECD Countries

2014 ◽  
Vol 17 (1) ◽  
pp. 21-44
Author(s):  
Eugeniusz Kwiatkowski ◽  
Przemysław Włodarczyk
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Oecd Countries ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Real Wages ◽  
Market Institutions ◽  
Employment Contracts ◽  
Protection Legislation ◽  
The Impact

This article presents the impact of the global crisis on employment in the OECD countries, and in particular is an attempt to explain why the impact is of a different scope in particular countries. Particular attention has been paid to the question of the role played by labour market institutions (such as employment protection legislation and fixed-term employment). The global economic crisis has influenced the situation in the labour markets of OECD countries, causing declines in employment and increases in unemployment. Changes in the level of employment in individual countries varied. Between 2007-2012 declines in production took place in the majority of OECD countries. Declines in real wages were also observed in those countries. On the other hand, in the period of 2005-2012 relatively small changes in labour market institutions occurred. With respect to both the stringency of employment protection legislation, as well as the share of fixed-term employment, there were no clearly visible trends in the data during the period of economic crisis. The econometric verification of theoretical hypotheses was performed using annual data from the 2005-2012 period for 26 OECD countries, and it shows that GDP and real wages were statistically significant determinants of employment size in the analyzed period. The study also confirmed the hypothesis of the existence of a non-linear (U-shaped) relationship between employment elasticity with respect to GDP and the level of stringency of employment protection legislation, as well as the share of fixed-term employment in the total number of employment contracts. The results show that the smallest declines in employment during a crisis might be expected in countries where the level of EPL is close to 2, and the share of fixed-term employment in the total number of employment contracts is close to 18%.

scholarly journals Knockin’ on heaven’s door? Reframing the debate on temporary employment and wages: evidence from Europe

2019 ◽  
Author(s):  
Daniela Bellani ◽  
Giulio Bosio
Keyword(s):  
Dynamic System ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Age Groups ◽  
Temporary Employment ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Institutional Settings ◽  
Protection Legislation ◽  
Permanent Workers

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.

scholarly journals The partisan politics of employment protection legislation: Social democrats, Christian democrats, and the conditioning effect of unemployment

2021 ◽  
pp. 1-20
Author(s):  
Reimut Zohlnhöfer ◽  
Linda Voigt
Keyword(s):  
Labour Market ◽  
Golden Age ◽  
Temporary Employment ◽  
Employment Protection ◽  
Partisan Politics ◽  
Employment Protection Legislation ◽  
Social Democrats ◽  
Regular Employment ◽  
Protection Legislation ◽  
The Government

Abstract Political parties are likely to hold differing views about employment protection legislation (EPL). While pro-welfare parties could support EPL, pro-market parties might focus on labour market deregulation. In this paper, we investigate empirically whether partisan politics, especially the government participation of Social democrats and Christian democrats, matter for EPL in 21 established OECD countries from 1985 to 2019. We show that during the golden age of the welfare state, the level of EPL was much higher where Social and Christian democrats dominated the government than elsewhere. After the golden age and under conditions of high unemployment, these unconditional effects mostly disappeared. Instead, the level of unemployment conditions partisan differences. Christian democrats liberalize EPL for regular employment significantly less than other parties under high levels of unemployment. In contrast, Social democrats defend high levels of EPL for regular and temporary employment when unemployment is low. Against expectations, they even liberalize employment protection for labour market insiders more than other parties at very high levels of unemployment.

scholarly journals Temporary Contracts, Employment Trajectories and Dualisation: A Comparison of Norway and Sweden

2021 ◽  
pp. 095001702110314
Author(s):  
Tomas Berglund ◽  
Roy A Nielsen ◽  
Olof Reichenberg ◽  
Jørgen Svalund
Keyword(s):  
Labour Market ◽  
Labour Force ◽  
Temporary Employment ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Permanent Employment ◽  
Employment Trajectories ◽  
Dead End ◽  
Protection Legislation ◽  
Strict Regulation

This study compares the labour market trajectories of the temporary employed in Norway with those in Sweden. Sweden’s employment protection legislation gap between the strict protection of permanent employment and the loose regulation of temporary employment has widened in recent decades, while Norway has maintained balanced and strict regulation of both employment types. The study asserts that the two countries differ concerning the distribution of trajectories, leading to permanent employment and trajectories that do not create firmer labour market attachment. Using sequence analysis to analyse two-year panels of the labour force survey for 1997–2011, several different trajectories are discerned in the two countries. The bridge trajectories dominate in Norway, while dead-end trajectories are more common in Sweden. Moreover, the bridge trajectories are selected to stronger categories (mid-aged and higher educated) in Sweden than in Norway. The results are discussed from the perspective of labour market dualisation.

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