Research surveys

Employment Consequences of Employment Protection Legislation

Nordic Economic Policy Review, No. 1, 2011

Author(s): Per Skedinger

Employment Consequences of Employment Protection Legislation Per Skedinger

This article surveys the literature and adds to the evidence on the impact of employment protection legislation on employment. While stringent employment protection contributes to less turnover and job reallocation, the effects on aggregate employment and unemployment over the business cycle are more uncertain. Exploitation of partial reforms and the use of micro data in recent research appear not to have affected results regarding employment and unemployment in any systematic way. Labour market prospects of young people and other marginal groups seem to worsen as a consequence of increased stringency of the legislation.

It is debatable whether marginal groups have gained much from the widespread policy strategy to liberalize regulations of temporary employment and leave regulations of regular employment intact. My own analysis suggests that increased stringency of regulations for regular work is associated with a higher incidence of involuntary temporary employment, particularly among the young.


Reference:

Skedinger, Per (2011), Employment Consequences of Employment Protection Legislation, Nordic Economic Policy Review 1(1), 45–83.

Per Skedinger

Contact

Ph: +46 8 665 4553
per.skedinger@ifn.se

Elgar Companion to

Social Capital and Health

Martin Ljunge okt 2018.jpg

Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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