Employment Protection Legislation in Emerging Economies

Author(s):  
Samir Amine ◽  
Wilner Predelus

With emerging economies facing significant lags in the use of information technology to improve their productivity and compete with industrialized economies, the availability of relatively lower-cost labor in the emerging economies is considered a powerful asset that can compensate for their technological disadvantage. However, regulating the labor market often proves to be rather challenging as it is important that a balance be struck between protecting workers and stimulating economic growth. This chapter analyzes the literature on labor market regulations in the emerging economies to observe that the trade-off between employment protection legislation (EPL), job creation, productivity, and innovation often cited in the literature is not conclusive.

Author(s):  
Samir Amine ◽  
Wilner Predelus

The merit of employment regulations in a market economy is often measured by their effectiveness in facilitating job creation without jeopardizing the notion of “decent work,” as defined by the International Labor Organization (ILO). Consequently, the recent literature on employment legislation has extensively focused on the flexibility of the labor market, as a fair middle ground is always necessary to avoid undue distortions that can negatively impact the economy and worker's wellbeing. This chapter analyzes the provisions of the labor law in Haiti and how it affects job security and flexibility to observe a flexible structure that rather benefits employers. Notably, labor law in Haiti may have in fact rendered workers more vulnerable because these labor legislations were enacted on the assumption that employers and workers are on the same footing when it comes to industrial relations, while historic facts do not support such an assumption.


2006 ◽  
pp. 122-143
Author(s):  
V. Gimpelson ◽  
R. Kapeliushnikov

The article focuses on diversification and destandartization of employment in the Russian economy. The authors discuss global and objective preconditions for this process but underline a few specific features of the Russian case. The latter are due to the market transition as well as to incomplete and selective enforcement of the excessively restrictive employment protection legislation. This explains high incidence of household-based subsistence farming, underemployment, time-related overemployment, informal employment against low level of formal contracts for fixed-term or part-time employment. Using representative data the authors illustrate all major forms of non-standard employment in Russia that have evolved since 1992.


2020 ◽  
Vol 20 (20) ◽  
Author(s):  
Antonio David ◽  
Samuel Pienknagura ◽  
Jorge Roldos

Labor markets in Latin America and the Caribbean (LAC) are characterized by high levels of informality and relatively rigid regulation. This paper shows that these two features are related and together make the speed of adjustment of employment to shocks slower, especially when regulations are tightly enforced. Evidence suggests that strict labor market regulations also have an adverse effect on medium-term growth. While both regulations on prices (minimum wages) and quantities (employment protection) decrease the speed of adjustment to shocks, they appear to be binding in different phases of the cycle—the former affects mostly the (net) job creation margin and the latter the (net) job destruction margin. The results also highlight possible interactions between labor market regulations and the effectiveness of macro-stabilization tools—including exchange rate depreciation.


Equilibrium ◽  
2015 ◽  
Vol 10 (4) ◽  
pp. 111
Author(s):  
Michał Pilc

The aim of this research was to identify the determinants of the employment protection legislation reforms in the global perspective. The study was based on the Labor Freedom index published by the Heritage Foundation, which allowed to include 179 countries in the research that were observed in the period 2003–2013. The conducted study has indicated that changes in GDP and the level of employment in industry may induce the introduction of labor reforms. The changes in the labor law also occurred to be correlated with the number of the nearly excluded from the labor market (the long-term unemployed and youth not in education, employment or training) and also with changes in the government expenditure. However, all these factors may lead to substantially various reform programs in particular countries due to the heterogeneous political pressure of the labor market interest groups and different governmental determination in introduction of the reforms.


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