Carlos Coca Gamito CDFMR and Georgios Baltos CDFMR
collection is still limited; however, it is urgent for the receiving states to promote relevant research that aims at improving the handling of migration flows to enhance social order, stability and citizens’ quality of life (Ortega and Peri, 2012).
The present study focuses on countries where the free mobility of workers is already a reality and considers the impact of the EPL on such flows, rather than (given the data availability problems) analysing the effect of migratory policies on labour force flows. In particular, we study the most advanced case of economic
In Europe, as in the rest of industrialized countries, reforms of the labour market have generally concerned employment protection legislation (EPL). One of the main missions of this legislation is to insure security for workers, particularly in case of redundancy. The object of this article is to compare the strictness and the degree of rigidity of EPL in two different economies, namely, Canada and France. This choice is justified by the fact that the labour market policies in both countries do not have the same orientation and are based on different ideological references.
This paper aims to identify the effects of the global crisis on employment and unemployment in the EU countries and indicate factors which may explain the differentiated response of labour markets to this crisis.
Analyses show that the global economic crisis affected the labour markets of EU countries, causing declines in employment and increases in unemployment. The greatest declines in employment were observed in Greece, Estonia, Ireland, Spain, Iceland, and Portugal, and the lowest in Austria, Belgium, the Netherlands, and Poland. The greatest increase in unemployment occurred in the Baltic countries, Greece, Spain, and Portugal.
The analyses indicate that the scale of changes in employment and unemployment during the global crisis depends on such factors as: the depth of the demand shock and scale of GDP adjustments; the degree of openness of the economy; the scope of alternative labour market adjustments and some labour market institutions, especially employment protection legislation and the share of fixed-term employment contracts. The analyses indicate that the smallest declines in employment (and correspondingly the smallest increases in unemployment) during the crisis can be expected in countries where the EPL indexes and share of those employed on fixed-term employment contracts in total employment are moderate.
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 itshows 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%.
place to tackle unemployment. Labor market regulation is analyzed through the OECD employment protection legislation (EPL) index, which can also be unbundled by type of contract (regular or temporary).
The timing of structural reform implementation can be directly linked to the economic environment, leading to an endogeneity issue. Standard econometric methodologies would then provide biased estimates since the change in the unemployment rate can be due to a cyclical component rather than to the implementation of product and labor market reforms. We control for the
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