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 Complementarities between Labour Market Institutions and their Causal Impact on Youth Labour Market Outcomes

2020 ◽  
Vol 20 (3) ◽  
Author(s):  
Niall O’Higgins ◽  
Giovanni Pica
Keyword(s):  
Labour Market ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Policy Reforms ◽  
Market Institutions ◽  
Market Outcomes ◽  
Labour Market Institutions ◽  
Protection Legislation ◽  
Labour Market Outcomes ◽  
The Impact

AbstractWe analyse theoretically and empirically the effects on young people’s labour market outcomes of two specific labour market institutions and their interaction: employment protection legislation and active labour market policy. The paper examines recent policy reforms in Italy focussing on the impact of the 2012 Fornero reforms of employment protection legislation as well as the initial impact of the EU-wide Youth Guarantee scheme introduced in Italy in March 2014. The paper then examines how these two policy reforms interacted. The analysis first confirms the finding that the Fornero reform increased permanent hires particularly amongst the very youngest workers; it then goes on to find that the YG was indeed successful in increasing the hires of young people, although this operated through a statistically significant increase in female hires on temporary contracts. Third, it finds some evidence of a dampening effect of the YG on EPL reforms as predicted by theory.

scholarly journals Labour market flexibilization and income distribution in Europe

2021 ◽  
Vol 68 (2) ◽  
pp. 167-185
Author(s):  
Philips Arestis ◽  
Jesús Ferreiro ◽  
Carmen Gómez
Keyword(s):  
Income Distribution ◽  
Labour Market ◽  
Positive Impact ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Temporary Workers ◽  
Real Wages ◽  
Income Share ◽  
Labour Income ◽  
Protection Legislation

This paper analyses the role played by the flexibilization of labour markets on functional income distribution. Specifically, we analyse whether employment protection legislation affects the evolution of labour income share, measured by the size of compensation of employees as a percentage of GDP, the sum of wages and salaries as a percentage of GDP and the size of the adjusted wage share, in twenty European economies. Our study?s results show that the evolution of labour income share is explained by the economic growth, the growth of employment and unemployment rates, and the growth of real wages. Regarding the role played by the flexibility of the labour market, and specifically of the employment protection legislation, only employment protection for temporary workers has a significant impact on the evolution of labour shares. Our results show that stricter provisions on the use of fixed-term and temporary agency contracts have a positive impact on the growth of labour shares.

scholarly journals Transformations of Swedish Labour Market Institutions. Effects on Employees’ Turnover Cognitions

2013 ◽  
pp. 91-120
Author(s):  
Tomas Berglund
Keyword(s):  
Labour Market ◽  
Unemployment Insurance ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
Protection Legislation ◽  
Turnover Cognitions

The article studies how changes in 2007 in the Swedish unemployment insurance (UI) have influenced employees’ turnover cognitions. It is argued that the combination of a strict employment protection legislation (EPL) and a generous UI in 2006 made employees more inclined to risky transitions. The post-2007 combination of a strict EPL and an ungenerous UI reinforces non-mobility intentions. Analyses of two surveys show a smaller proportion of employees with turnover cognitions in 2010 than in 2006.

Cumulative (Dis)advantage? The Impact of Labour Market Policies on Late Career Employment from a Life Course Perspective

2014 ◽  
Vol 44 (2) ◽  
pp. 213-233 ◽  
Author(s):  
JENNY BENNETT ◽  
KATJA MÖHRING
Keyword(s):  
Labour Market ◽  
Early Retirement ◽  
Research Question ◽  
Life Course Perspective ◽  
Employment Protection ◽  
Central Research ◽  
Employment Protection Legislation ◽  
Older Individuals ◽  
Protection Legislation ◽  
The Impact

AbstractWe investigate the labour market situation of older individuals in Europe in relation to their previous employment history as well as the regulations relating to employment protection legislation and early retirement. Specifically, we look at the competing risks of early retirement and late career unemployment. The central research question is whether policy effects differ according to the characteristics of an individual's previous work history. We employ data for twelve European countries from the Survey of Health, Ageing and Retirement in Europe (SHARELIFE) and estimate multilevel regression models. The results show different mechanisms for the risks of unemployment and early retirement. Late career unemployment results from individual factors related to fragmented careers, marginal employment and short tenures. In the case of early retirement, we find the interplay of individual and policy factors to be crucial. Persons with consistent careers have an increased probability of early retirement, but only in countries with generous early retirement benefits. However, employment protection legislation appears to counteract early retirement for this group of individuals. We conclude that policy factors do not have uniform effects for older individuals, but should rather be viewed against the background of previous developments in individual career paths.

scholarly journals Employment protection legislation and labour income shares in Europe

2020 ◽  
Vol 67 (3) ◽  
pp. 291-308
Author(s):  
Philips Arestis ◽  
Jesús Ferreiro ◽  
Carmen Gómez
Keyword(s):  
Positive Impact ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Temporary Workers ◽  
Real Wages ◽  
Income Share ◽  
Labour Income ◽  
Protection Legislation ◽  
European Economies ◽  
The Impact

The paper analyses the determinant elements of the evolution of labour income share, measured by the size of compensation of employees as a percentage of GDP in twenty European economies. In doing so, special attention is paid to the impact of employment protection legislation. Our study?s results show that the evolution of labour income share is explained by the economic growth, the growth of employment and unemployment rates, and the growth of real wages. Regarding employment protection, only employment protection for temporary workers matters. Our results shows that stricter provisions on the use of fixed-term and temporary agency contracts have a positive impact on the growth of the labour shares.

Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany

2018 ◽  
Author(s):  
Gerhard Bosch ◽  
Thorsten Kalina
Keyword(s):  
Income Inequality ◽  
Labour Market ◽  
Economic Crisis ◽  
Household Income ◽  
Wage Bargaining ◽  
Living Standards ◽  
Social Model ◽  
Real Wages ◽  
The Impact ◽  
Over Time

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period

scholarly journals Labour Market Regulations and Capital Intensity

2018 ◽  
Author(s):  
Gilbert Cette ◽  
Jimmy Lopez ◽  
Jacques Mairesse
Keyword(s):  
Labour Market ◽  
Capital Intensity ◽  
Service Industries ◽  
Employment Protection ◽  
Skilled Workers ◽  
Large Country ◽  
Down Low ◽  
Highly Skilled ◽  
Protection Legislation ◽  
The Impact

What is the impact of labour market regulations as measured by the OECD indicator of employment protection legislation (EPL) on capital and skill composition? Precisely, this study investigates the effects of changes in EPL on changes in four types of capital and three components of labour skill. They include construction, non-ICT, ICT, and R&D capital components on the one hand, and low-, medium-, and highly-skilled labour on the other. Our analysis is grounded on a large country–industry panel dataset of fourteen OECD countries, and eighteen manufacturing and market service industries, from 1988 to 2007. It shows that strengthening EPL lowers ICT capital and, even more severely, R&D capital relative to non-ICT and construction capital; it also brings down low-skilled relative to highly-skilled workers’ employment. These results suggest that structural reforms for more labour flexibility could have a favourable impact on firms’ R&D investment and hiring of low-skilled workers.

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