<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In many countries, labor courts play a central role in the determination of firing costs by monitoring and supervising the procedures for dismissals, and, eventually, deciding severance payments mandated by the employment protection legislation (EPL). To get some insights about the impact of labor courts on effective firing costs, we explore a new database that contains information on labor courts’ intervention in firings before and after the implementation of significant EPL reforms modifying severance payments and procedures for dismissals. Our results suggest that labor court rulings on economic dismissals did not fully translate the reduction of firing costs mandated by the new EPL to effective firing costs.</p></abstract>

In many countries, labor courts play a central role in the determination of firing costs by monitoring and supervising the procedures for dismissals, and, eventually, deciding severance payments mandated by the employment protection legislation (EPL). To get some insights about the impact of labor courts on effective firing costs, we explore a new database that contains information on labor courts’ intervention in firings before and after the implementation of significant EPL reforms modifying severance payments and procedures for dismissals. Our results suggest that labor court rulings on economic dismissals did not fully translate the reduction of firing costs mandated by the new EPL to effective firing costs.

Employment protection legislation, labor courts, and effective firing costs

IZA Journal of Labor Economics

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Employment protection legislation, labor courts, and effective firing costs"}

In many countries, labor courts play a central role in the determination of firing costs by monitoring and supervising the procedures for dismissals, and,...

Employment protection legislation, labor courts, and effective firing costs

Published Online: Mar 30, 2020

Page range: -

DOI: https://doi.org/10.2478/izajole-2020-0002

Keywords
employment protection legislation, firing costs, unemployment, labor courts

© 2020 Juan F. Jimeno, Marta Martínez-Matute, and Juan S. Mora-Sanguinetti, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Employment protection legislation, labor courts, and effective firing costs

Published Online: Mar 30, 2020

Page range: -

DOI: https://doi.org/10.2478/izajole-2020-0002

Keywordsemployment protection legislation, firing costs, unemployment, labor courts

© 2020 Juan F. Jimeno, Marta Martínez-Matute, and Juan S. Mora-Sanguinetti, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
employment protection legislation, firing costs, unemployment, labor courts