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href="#Employment_Protection_Legislation_Index_by_the_OECD"> <div class="vector-toc-text"> <span class="vector-toc-numb">2</span> <span>Employment Protection Legislation Index by the OECD</span> </div> </a> <ul id="toc-Employment_Protection_Legislation_Index_by_the_OECD-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Effects_of_employment_protection_legislation" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Effects_of_employment_protection_legislation"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Effects of employment protection legislation</span> </div> </a> <button aria-controls="toc-Effects_of_employment_protection_legislation-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Effects of employment protection legislation subsection</span> </button> <ul id="toc-Effects_of_employment_protection_legislation-sublist" class="vector-toc-list"> <li id="toc-On_the_duality_of_the_labour_market" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_the_duality_of_the_labour_market"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.1</span> <span>On the duality of the labour market</span> </div> </a> <ul id="toc-On_the_duality_of_the_labour_market-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-On_unemployment" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_unemployment"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.2</span> <span>On unemployment</span> </div> </a> <ul id="toc-On_unemployment-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-On_employment" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_employment"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.3</span> <span>On employment</span> </div> </a> <ul id="toc-On_employment-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-On_wages" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_wages"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.4</span> <span>On wages</span> </div> </a> <ul id="toc-On_wages-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-On_firm_efficiency_and_profits" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_firm_efficiency_and_profits"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.5</span> <span>On firm efficiency and profits</span> </div> </a> <ul id="toc-On_firm_efficiency_and_profits-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-On_product_market_regulation" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_product_market_regulation"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.6</span> <span>On product market regulation</span> </div> </a> <ul id="toc-On_product_market_regulation-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-On_hours_per_worker" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#On_hours_per_worker"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.7</span> <span>On hours per worker</span> </div> </a> <ul id="toc-On_hours_per_worker-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Economic_theory" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Economic_theory"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Economic theory</span> </div> </a> <ul id="toc-Economic_theory-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Notes" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Notes"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Notes</span> </div> </a> <ul id="toc-Notes-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav 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href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239334494"><table class="sidebar sidebar-collapse nomobile nowraplinks" style="order-spacing:0.2em 0;"><tbody><tr><td class="sidebar-pretitle" style="background:#CD5C5C;color:white;">Part of <a href="/wiki/Category:Labor" title="Category:Labor"><span class="tmp-color" style="color:white">a series</span></a> on</td></tr><tr><th class="sidebar-title-with-pretitle" style="background:#CD5C5C;color:white;padding-bottom:0.3em;"><a href="/wiki/Portal:Organized_Labour" title="Portal:Organized Labour"><span class="tmp-color" style="color:white">Organized labour</span></a></th></tr><tr><td class="sidebar-image"><span typeof="mw:File"><a href="/wiki/File:Co-op_activism5.svg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f4/Co-op_activism5.svg/80px-Co-op_activism5.svg.png" decoding="async" width="80" height="80" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f4/Co-op_activism5.svg/120px-Co-op_activism5.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f4/Co-op_activism5.svg/160px-Co-op_activism5.svg.png 2x" data-file-width="500" data-file-height="500" /></a></span></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-top:1px solid #aaa;padding-bottom:0;text-align:center;;color: var(--color-base)"><a href="/wiki/Labour_movement" title="Labour movement">Labour movement</a></div><div class="sidebar-list-content mw-collapsible-content plainlist"> <ul><li><div class="hlist"><ul><li><a href="/wiki/Conflict_theories" title="Conflict theories">Conflict theories</a></li><li><a href="/wiki/Decent_work" title="Decent work">Decent work</a></li><li><a href="/wiki/Exploitation_of_labor" class="mw-redirect" title="Exploitation of labor">Exploitation of labour</a></li><li><a href="/wiki/Timeline_of_labor_issues_and_events" class="mw-redirect" title="Timeline of labor issues and events">Timeline</a></li><li><a href="/wiki/New_unionism" title="New unionism">New unionism</a></li><li><a href="/wiki/Proletariat" title="Proletariat">Proletariat</a></li><li><a href="/wiki/Social_movement_unionism" title="Social movement unionism">Social movement unionism</a></li><li><a href="/wiki/Social_democracy" title="Social democracy">Social democracy</a></li><li><a href="/wiki/Democratic_socialism" title="Democratic socialism">Democratic socialism</a></li><li><a href="/wiki/Socialism" title="Socialism">Socialism</a></li><li><a href="/wiki/Communism" title="Communism">Communism</a></li><li><a href="/wiki/Syndicalism" title="Syndicalism">Syndicalism</a></li><li><a href="/wiki/Union_busting" title="Union busting">Union busting</a></li><li><a href="/wiki/Anarcho-syndicalism" title="Anarcho-syndicalism">Anarcho-syndicalism</a></li><li><a href="/wiki/National-syndicalism" class="mw-redirect" title="National-syndicalism">National-syndicalism</a></li></ul></div></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-top:1px solid #aaa;padding-bottom:0;text-align:center;;color: var(--color-base)"><a href="/wiki/Labor_rights" title="Labor rights">Labour rights</a></div><div class="sidebar-list-content mw-collapsible-content plainlist"><div class="hlist"> <ul><li><a href="/wiki/Annual_leave" title="Annual leave">Annual leave</a></li> <li><a href="/wiki/Child_labour" title="Child labour">Child labour</a></li> <li><a href="/wiki/Collective_bargaining" title="Collective bargaining">Collective bargaining</a></li> <li><a href="/wiki/Diversity,_equity,_and_inclusion" title="Diversity, equity, and inclusion">Diversity, equity, and inclusion</a></li> <li><a href="/wiki/Eight-hour_day" class="mw-redirect" title="Eight-hour day">Eight-hour day</a></li> <li><a href="/wiki/Employment_discrimination" title="Employment discrimination">Employment discrimination</a></li> <li><a class="mw-selflink selflink">Employment protection</a></li> <li><a href="/wiki/Equal_pay_for_equal_work" title="Equal pay for equal work">Equal pay</a></li> <li><a href="/wiki/Four-day_week" class="mw-redirect" title="Four-day week">Four-day week</a></li> <li><a href="/wiki/Freedom_of_association" title="Freedom of association">Freedom of association</a></li> <li><a href="/wiki/Legal_working_age" title="Legal working age">Legal working age</a></li> <li><a href="/wiki/Minimum_wage" title="Minimum wage">Minimum wage</a></li> <li><a href="/wiki/Occupational_safety_and_health" title="Occupational safety and health">Occupational safety and health</a></li> <li><a href="/wiki/Overwork" title="Overwork">Overwork</a></li> <li><a href="/wiki/Paid_time_off" title="Paid time off">Paid time off</a></li> <li><a href="/wiki/Professional_abuse" title="Professional abuse">Professional abuse</a></li> <li><a href="/wiki/Right_to_rest_and_leisure" title="Right to rest and leisure">Right to rest and leisure</a></li> <li><a href="/wiki/Right_to_sit" title="Right to sit">Right to sit</a></li> <li><a href="/wiki/Sabbatical" title="Sabbatical">Sabbatical</a></li> <li><a href="/wiki/Sick_leave" title="Sick leave">Sick leave</a></li> <li><a href="/wiki/Six-hour_day" title="Six-hour day">Six-hour day</a></li> <li><a href="/wiki/Toxic_workplace" title="Toxic workplace">Toxic workplace</a></li> <li><a href="/wiki/Unfree_labour" class="mw-redirect" title="Unfree labour">Unfree labour</a></li> <li><a href="/wiki/Workers%27_right_to_access_the_toilet" title="Workers' right to access the toilet">Workers' right to access the toilet</a></li></ul> </div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-top:1px solid #aaa;padding-bottom:0;text-align:center;;color: var(--color-base)"><a href="/wiki/Trade_union" title="Trade union">Trade unions</a></div><div class="sidebar-list-content mw-collapsible-content plainlist"> <ul><li><a href="/wiki/List_of_trade_unions" title="List of trade unions">Trade unions by country</a></li> <li><a href="/wiki/List_of_federations_of_trade_unions" title="List of federations of trade unions">Trade union federations</a></li> <li><a href="/wiki/International_comparisons_of_trade_unions" title="International comparisons of trade unions">International comparisons</a></li> <li><div class="hlist"><ul><li><a href="/wiki/International_Trade_Union_Confederation" title="International Trade Union Confederation">ITUC</a></li><li><a href="/wiki/World_Federation_of_Trade_Unions" title="World Federation of Trade Unions">WFTU</a></li></ul></div></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-top:1px solid #aaa;padding-bottom:0;text-align:center;;color: var(--color-base)"><a href="/wiki/Strike_action" title="Strike action">Strike action</a></div><div class="sidebar-list-content mw-collapsible-content plainlist"><div class="hlist"> <ul><li><a href="/wiki/List_of_strikes" title="List of strikes">Chronological list of strikes</a></li> <li><a href="/wiki/Hartal" title="Hartal">Hartal</a></li> <li><a href="/wiki/General_strike" title="General strike">General strike</a> <ul><li><a href="/wiki/Bandh" title="Bandh">Bandh</a></li> <li><a href="/wiki/Strike_paper" title="Strike paper">newspapers</a></li></ul></li> <li><a href="/wiki/Green_ban" title="Green ban">Green bans</a></li> <li><a href="/wiki/Lockout_(industry)" title="Lockout (industry)">Lockouts</a></li> <li><a href="/wiki/Overtime_ban" title="Overtime ban">Overtime bans</a></li> <li><a href="/wiki/Pen-down_strike" title="Pen-down strike">Pen-down strikes</a></li> <li><a href="/wiki/Sitdown_strike" title="Sitdown strike">Sitdown strikes</a></li> <li><a href="/wiki/Solidarity_action" title="Solidarity action">Solidarity action</a></li> <li><a href="/wiki/Walkout" title="Walkout">Walkouts</a></li> <li><a href="/wiki/Whipsaw_strike" title="Whipsaw strike">Whipsaw strikes</a></li> <li><a href="/wiki/Wildcat_strike" title="Wildcat strike">Wildcat strikes</a></li> <li><a href="/wiki/Work-to-rule" title="Work-to-rule">Work-to-rule</a></li></ul> </div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-top:1px solid #aaa;padding-bottom:0;text-align:center;;color: var(--color-base)"><a href="/wiki/List_of_Labour_parties" title="List of Labour parties">Labour parties</a></div><div class="sidebar-list-content mw-collapsible-content plainlist"><div class="hlist"> <ul><li><a href="/wiki/Australian_Labor_Party" title="Australian Labor Party">Australia</a></li> <li><a href="/wiki/Barbados_Labour_Party" title="Barbados Labour Party">Barbados</a></li> <li><a href="/wiki/Brazilian_Labour_Party_(current)" class="mw-redirect" title="Brazilian Labour Party (current)">Brazil</a></li> <li><a href="/wiki/Fiji_Labour_Party" title="Fiji Labour Party">Fiji</a></li> <li><a href="/wiki/Georgian_Labour_Party" title="Georgian Labour Party">Georgia</a></li> <li><a href="/wiki/Labour_Party_(Hong_Kong)" title="Labour Party (Hong Kong)">Hong Kong</a></li> <li><a href="/wiki/Labour_Party_(Ireland)" title="Labour Party (Ireland)">Ireland</a></li> <li><a href="/wiki/Israeli_Labor_Party" title="Israeli Labor Party">Israel</a></li> <li><a href="/wiki/Labour_Party_(Malta)" title="Labour Party (Malta)">Malta</a></li> <li><a href="/wiki/Labour_Party_(New_Caledonia)" title="Labour Party (New Caledonia)">New Caledonia</a></li> <li><a href="/wiki/New_Zealand_Labour_Party" title="New Zealand Labour Party">New Zealand</a></li> <li><a href="/wiki/Labour_Party_(Netherlands)" title="Labour Party (Netherlands)">Netherlands</a></li> <li><a href="/wiki/Labour_Party_(Norway)" title="Labour Party (Norway)">Norway</a></li> <li><a href="/wiki/Portuguese_Labour_Party" title="Portuguese Labour Party">Portugal</a></li> <li><a href="/wiki/Workers%27_Party_(Singapore)" title="Workers' Party (Singapore)">Singapore</a></li> <li><a href="/wiki/Labor_Party_(South_Korea)" title="Labor Party (South Korea)">South Korea</a></li> <li><a href="/wiki/Labour_Party_(UK)" title="Labour Party (UK)">United Kingdom</a></li> <li><a href="/wiki/Swedish_Social_Democratic_Party" title="Swedish Social Democratic Party">Sweden</a></li></ul> </div></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="border-top:1px solid #aaa;padding-bottom:0;text-align:center;;color: var(--color-base)">Academic disciplines</div><div class="sidebar-list-content mw-collapsible-content plainlist"> <ul><li><a href="/wiki/Critique_of_work" title="Critique of work">Critique of work</a></li> <li><a href="/wiki/Industrial_relations" title="Industrial relations">Industrial relations</a></li> <li><a href="/wiki/Labour_economics" title="Labour economics">Labour economics</a></li> <li><a href="/wiki/Labor_history_(discipline)" class="mw-redirect" title="Labor history (discipline)">Labour history</a></li> <li><a href="/wiki/Labour_law" title="Labour law">Labour law</a></li> <li><a href="/wiki/Post-work_society" title="Post-work society">Post-work society</a></li> <li><a href="/wiki/Refusal_of_work" title="Refusal of work">Refusal of work</a></li></ul></div></div></td> </tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Labor" title="Template:Labor"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Labor" title="Template talk:Labor"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Labor" title="Special:EditPage/Template:Labor"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p><b>Employment protection legislation</b> (<b>EPL</b>) includes all types of employment protection measures, whether grounded primarily in legislation, court rulings, collectively bargained conditions of employment, or customary practice.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The term is common among circles of <a href="/wiki/Economist" title="Economist">economists</a>. Employment protection refers both to regulations concerning hiring (e.g. rules favouring disadvantaged groups, conditions for using temporary or fixed-term contracts, training requirements) and firing (e.g. redundancy procedures, mandated prenotification periods and severance payments, special requirements for collective dismissals and short-time work schemes). </p><p>There exist various institutional arrangements that can provide employment protection: the private market, labour legislation, collective bargaining arrangements and not the least, court interpretations of legislative and contractual provisions. Some forms of de facto regulations are likely to be adopted even in the absence of legislation, simply because both workers and firms derive advantages from long-term employment relations.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Definition">Definition</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=1" title="Edit section: Definition"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>According to Barone (2001) with the acronym EPL economists refer to the entire set of regulations that place some limits to the faculties of firms to hire and fire workers, even if they are not grounded primarily in the law, but originate from the <a href="/wiki/Collective_bargaining" title="Collective bargaining">collective bargaining</a> of the social partners, or are a consequence of <a href="/wiki/Court_ruling" class="mw-redirect" title="Court ruling">court rulings</a>.<sup id="cite_ref-Barone2001_3-0" class="reference"><a href="#cite_note-Barone2001-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> In particular, provisions favouring the employment of disadvantaged groups in society, determining the conditions for the use of <a href="/w/index.php?title=Temporary_contract&action=edit&redlink=1" class="new" title="Temporary contract (page does not exist)">temporary</a> or <a href="/wiki/Fixed-term_contract" class="mw-redirect" title="Fixed-term contract">fixed-term contracts</a>, or imposing training requirements on the firm, affect hiring policies, while redundancy procedures, mandated pre-notification periods and <a href="/wiki/Severance_payment" class="mw-redirect" title="Severance payment">severance payments</a>, special requirements for <a href="/w/index.php?title=Collective_dismissal&action=edit&redlink=1" class="new" title="Collective dismissal (page does not exist)">collective dismissals</a> and short-time work schemes influence firing decisions. The nature of these restrictions on the firms’ freedom to adjust the labour input is quite similar in all OECD countries, but the actual procedural details and the overall degree of stringency implied by them varies considerably. These provisions are enforced through the worker’s right to appeal against his lay-off. </p><p>Some aspects of these regulations, like the length of advance notices or the dimension of severance payments can be measured with precision. Other important features of EPL, like for example the willingness of labour courts to entertain appeals by fired workers, or how judges interpret the concept of “just cause” for <a href="/wiki/Termination_of_employment" title="Termination of employment">termination</a>, are much more difficult to quantify. </p> <div class="mw-heading mw-heading2"><h2 id="Employment_Protection_Legislation_Index_by_the_OECD">Employment Protection Legislation Index by the OECD</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=2" title="Edit section: Employment Protection Legislation Index by the OECD"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>One of the more frequently used measures of the strictness of the EPL in each country and through different years is the so-called <b>Employment Protection Legislation Index</b> elaborated by the <a href="/wiki/OECD" title="OECD">OECD</a>. This index is calculated along 18 basic items, which can be classified in three main areas:<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> </p> <ol><li>Employment protection of regular workers against individual dismissal;</li> <li>Specific requirements for collective dismissals; and</li> <li>Regulation of temporary forms of employment.</li></ol> <p>The 18 first-digit inputs are then expressed in either of the following forms: </p> <ol><li>Units of time (e.g. delays before notice can start, or months of notice and severance pay);</li> <li>As a number (e.g. maximum number of successive fixed-term contracts allowed); or</li> <li>As a score on an ordinal scale specific to each item (0 to 2, 3, 4 or simply yes/no).</li></ol> <p>Then, these different scoring is converted into cardinal scores that are normalized to range from 0 to 6, with higher scores representing stricter regulation. Therefore, each of the different items is normalized according to weighted averages, thus constructing three sets of summary indicators that correspond to successively more aggregated measures of EPL strictness. </p><p>The last step of the procedure involves computing, for each country, an overall summary indicator based on the three subcomponents: </p> <ol><li>Strictness of regulation for regular contracts,</li> <li>Temporary contracts, and</li> <li>Collective dismissals.</li></ol> <p>The summary measure for collective dismissals is attributed just 40% of the weight assigned to regular and temporary contracts. The rationale for this is that the collective dismissals indicator only reflects additional employment protection triggered by the collective nature of the dismissal. In most countries, these additional requirements are quite modest. Moreover, summary measures for collective dismissals are only available since the late 1990s. An alternative overall index, so-called <b>Version 1</b>, has been thus calculated as an unweighted average of the summary measures for regular and temporary contracts only. While more restrictive than the previous one (so-called <b>Version 2</b>), this alternative measure of the overall EPL strictness allows comparisons over a longer period of time (since the late 1980s compared with the late 1990s).<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-halign-center" typeof="mw:File/Thumb"><a href="/wiki/File:EPL_index_for_OECD_countries.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/0/09/EPL_index_for_OECD_countries.jpg/700px-EPL_index_for_OECD_countries.jpg" decoding="async" width="700" height="572" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/0/09/EPL_index_for_OECD_countries.jpg 1.5x" data-file-width="989" data-file-height="808" /></a><figcaption>The EPL index elaborated by the OECD.</figcaption></figure> <div class="mw-heading mw-heading2"><h2 id="Effects_of_employment_protection_legislation">Effects of employment protection legislation</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=3" title="Edit section: Effects of employment protection legislation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="On_the_duality_of_the_labour_market">On the duality of the labour market</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=4" title="Edit section: On the duality of the labour market"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Some economists have claimed that empirical evidence gives support to their theories, according to which EPL leads to a <a href="/wiki/Market_segment" class="mw-redirect" title="Market segment">segmentation</a> in the <a href="/wiki/Labour_market" class="mw-redirect" title="Labour market">labour market</a> between the so-called <i>insiders</i>, the workers with a protected job, and the <i>outsiders</i>, who are people that are either <a href="/wiki/Unemployment" title="Unemployment">unemployed</a> or <a href="/wiki/Employment" title="Employment">employed</a> with <a href="/wiki/Fixed-term_contract" class="mw-redirect" title="Fixed-term contract">fixed-term</a>, <a href="/wiki/Part-time_contract" class="mw-redirect" title="Part-time contract">part-time</a> or <a href="/w/index.php?title=Temporary_contract&action=edit&redlink=1" class="new" title="Temporary contract (page does not exist)">temporary</a> contracts, or even in the <a href="/wiki/Black_economy" class="mw-redirect" title="Black economy">black economy</a>, and face big difficulties to find a job covered by EPL because of the firms’ reduced propensity to hire.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (November 2009)">citation needed</span></a></i>]</sup> This latter group is mainly constituted by youths, women, <a href="/wiki/Racial_minority" class="mw-redirect" title="Racial minority">racial minorities</a> and <a href="/wiki/Skilled_worker" title="Skilled worker">unskilled workers</a>.<sup id="cite_ref-Barone2001_3-1" class="reference"><a href="#cite_note-Barone2001-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="On_unemployment">On unemployment</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=5" title="Edit section: On unemployment"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Whether EPL has any effect on unemployment is an issue of contention between economists. On the one hand, assuming that the <a href="/wiki/Economic_cycle" class="mw-redirect" title="Economic cycle">cyclical</a> wage pattern is not affected by mandated firing costs, EPL reduces the propensity to hire by employers, since they fear that such decisions will be difficult to reverse in the future, in case of a recession. On the other hand, EPL also leads firms during <a href="/wiki/Economic_recession" class="mw-redirect" title="Economic recession">downswings</a> to keep more workers employed, than they would have otherwise done. Therefore, EPL reduces both <a href="/wiki/Job_creation" class="mw-redirect" title="Job creation">job creation</a> and <a href="/w/index.php?title=Job_destruction&action=edit&redlink=1" class="new" title="Job destruction (page does not exist)">job destruction</a>, so that the net effects on average <a href="/wiki/Employment" title="Employment">employment</a> and <a href="/wiki/Unemployment" title="Unemployment">unemployment</a> are not identifiable a priori. What is instead agreed among economists, is that more stringent EPL lowers the fluctuations in the quantity of labour <a href="/wiki/Demand" title="Demand">demanded</a> over the <a href="/wiki/Business_cycle" title="Business cycle">business cycle</a>, leading to smoother dynamic patterns of those aggregates.<sup id="cite_ref-Barone2001_3-2" class="reference"><a href="#cite_note-Barone2001-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>Economists considering that EPL has no effect on unemployment include Blanchard and Portugal (2000).<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> In their article they compare two opposite countries as regards their EPL stance: <a href="/wiki/Portugal" title="Portugal">Portugal</a> with one of the more strict legislations in the world and the <a href="/wiki/United_States" title="United States">US</a> with one of the more flexible ones. In spite of these differences, both countries have similar unemployment rates which undermines the argument considering that EPL has any effect on unemployment. Instead, the authors claim that EPL does affect two other variables: <a href="/w/index.php?title=Job_flows&action=edit&redlink=1" class="new" title="Job flows (page does not exist)">job flows</a> and unemployment duration. EPL would reduce job flows (from employment to unemployment: employers are less willing to fire, given that they must pay indemnification to workers) therefore reducing unemployment but would increase unemployment duration, increasing the unemployment rate. These two effects would neutralize each other, explaining why overall, EPL has no effect on unemployment. </p><p>Nickell (1997)<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> arrived to similar conclusions when stating that labor market rigidities that do not appear to have serious implications for average levels of unemployment included strict employment protection legislation and general legislation on labor market standards. </p><p>Among those that have found evidence suggesting that EPL increases unemployment are <a href="/wiki/Edward_Lazear" title="Edward Lazear">Lazear</a> (1990).<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> The author argued that mandated severance pay seemed to increase unemployment rates. His estimates suggested that an increase from zero to three months of severance pay would raise the unemployment rate by 5.5 percent in the United States. </p> <div class="mw-heading mw-heading3"><h3 id="On_employment">On employment</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=6" title="Edit section: On employment"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Lazear (1990)<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> once again argues he has evidence suggesting that EPL reduces the <a href="/wiki/Employment-to-population_ratio" title="Employment-to-population ratio">employment-to-population ratio</a>. In his article he claims that the best estimates suggest that moving from no required <a href="/wiki/Severance_pay" class="mw-redirect" title="Severance pay">severance pay</a> to three months of required severance pay to employees with ten years of service would reduce the employment-population ratio by about one percent. In the <a href="/wiki/United_States" title="United States">United States</a> that would mean over a million jobs. Lazear argues that the young could bear a disproportionate amount of the burden. </p><p>To the contrary, Bertola and Bentolila (1990)<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> found evidence supporting the idea that firing costs have a larger effect on firms' propensity to fire than to hire, and therefore (slightly) increase average long-run <a href="/wiki/Employment" title="Employment">employment</a>. </p> <div class="mw-heading mw-heading3"><h3 id="On_wages">On wages</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=7" title="Edit section: On wages"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Several authors have found that EPL has significant effects on wages. As stated by Lazear (1990),<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> in a perfect labor market, severance payments can have no real effects as they can be undone by a properly designed labor contract. Leonardi and Pica (2006) found evidence supporting this claim. They suggest that in the case of <a href="/wiki/Italy" title="Italy">Italy</a> an EPL reform in 1990 had as effect to reduce entry wages by 6 percent, implying that firms tend to transfer the increase in the cost of firing (due to EPL) onto workers. In fact, in their study they find that 25 percent of the firing cost was shifted onto lower wages in the case of Italy.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> Similarly, Brancaccio, Garbellini, and Giammetti (2018) found that EPL reductions have no significant links with real GDP growth whereas they are significantly correlated with wage share reductions.<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="On_firm_efficiency_and_profits">On firm efficiency and profits</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=8" title="Edit section: On firm efficiency and profits"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In principle the effects on profits are ambiguous. Because of EPL, firms engage themselves in labour hoarding practices, which lead them to employ a lower quantity of workers during upswings, while keeping inefficient levels of employment in downturns. For a given level of wages, this loss of productive <a href="/wiki/Economic_efficiency" title="Economic efficiency">efficiency</a> would result in lower average <a href="/wiki/Profit_(economics)" title="Profit (economics)">profits</a>. On the other hand, if firms operated in a context of efficiency wages, by inducing more stable relationships with the workers and reducing their job and income insecurity, EPL could allow them to pay lower wages, without reducing the effort provided by the labour force employed, with beneficial effects on profits.<sup id="cite_ref-Barone2001_3-3" class="reference"><a href="#cite_note-Barone2001-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="On_product_market_regulation">On product market regulation</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=9" title="Edit section: On product market regulation"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>There appears to be agreement among economists on the positive <a href="/wiki/Correlation" title="Correlation">correlation</a> between product market and employment <a href="/wiki/Regulation" title="Regulation">regulation</a>. Although employment protection legislation is only one aspect of the wide range of regulatory interventions in the <a href="/wiki/Labour_market" class="mw-redirect" title="Labour market">labour market</a>, Nicoletti et al. (2000) find evidence suggesting that, across countries, restrictive regulatory environments in the product market tend to be associated with restrictive employment protection policies. They claim that the indicators presented in their paper are closely related, with a statistical <a href="/wiki/Correlation" title="Correlation">correlation</a> of 0.73 (<a href="/wiki/Statistical_significance" title="Statistical significance">significant</a> at the 1% level). In other words, according to these results, restrictive product market regulations are matched by analogous EPL restrictions to generate a tight overall regulatory environment for firms in their product market as well as in the allocation of <a href="/w/index.php?title=Labour_input&action=edit&redlink=1" class="new" title="Labour input (page does not exist)">labour inputs</a>. The strong correlation between regulatory regimes in the product market and EPL also suggests that their influence may have compounded effects on labour market outcomes, making regulatory reform in only one market less effective than simultaneous reform in the two markets.<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> </p><p>Kugler and Pica (2003) find similar results in the case of the <a href="/wiki/Economy_of_Italy" title="Economy of Italy">Italian economy</a>. They present a matching model which illustrates how <a href="/wiki/Barriers_to_entry" title="Barriers to entry">barriers to entry</a> in the <a href="/wiki/Product_market" title="Product market">product market</a> (product market regulation) mitigate the impact of <a href="/wiki/Labor_market" class="mw-redirect" title="Labor market">labor market</a> <a href="/wiki/Deregulation" title="Deregulation">deregulation</a>, (that is, mitigate the effects of a reduction in the strictness of EPL). In the author's opinion, this means that there are economic complementarities between labor and product market policies in their model, in the sense that the effectiveness of one policy depends on the implementation of the other policy. Thus, an important implication of their model is that labor market deregulation will be less effective in the presence of heavier regulations of entry.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> Similar results are obtained by Koeniger and Vindigni (2003).<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="On_hours_per_worker">On hours per worker</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=10" title="Edit section: On hours per worker"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Whereas EPL may have not a <a href="/wiki/Statistical_significance" title="Statistical significance">significant</a> effect on unemployment, strict EPL gives incentives to the firms to resort to other sources of <a href="/wiki/Labour_market_flexibility" title="Labour market flexibility">flexibility</a> like overtime, which, as shown by Abraham and Houseman (1994),<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> indeed tends to be used much more in Continental European countries, where the variability of hours per worker is significantly higher than in the Anglo-Saxon <a href="/wiki/Labour_market" class="mw-redirect" title="Labour market">labour markets</a>. </p> <div class="mw-heading mw-heading2"><h2 id="Economic_theory">Economic theory</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=11" title="Edit section: Economic theory"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In economic theory, several authors have argued that employment protection can be desirable when there are frictions in the working of markets. For example, Pissarides (2001) and Alvarez and Veracierto (2001) show that employment protection can play an important role in the absence of perfect insurance markets.<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> Schmitz (2004) argues that constraining contractual freedom by legislating employment protection can be welfare-enhancing when principal-agent relationships are plagued by asymmetric information.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=12" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Labour_law" title="Labour law">Labour law</a></li> <li><a href="/wiki/Labour_market" class="mw-redirect" title="Labour market">Labour market</a></li> <li><a href="/wiki/Labour_market_flexibility" title="Labour market flexibility">Labour market flexibility</a></li> <li><a href="/wiki/Microeconomics" title="Microeconomics">Microeconomics</a></li> <li><a href="/wiki/Occupational_licensing" title="Occupational licensing">Occupational licensing</a></li> <li><a href="/wiki/Unemployment" title="Unemployment">Unemployment</a></li> <li><a href="/wiki/List_of_publications_in_economics#Labour_economics" class="mw-redirect" title="List of publications in economics">Important publications in labour economics</a></li> <li><a href="/wiki/Job_security" title="Job security">Job security</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Employment_protection_legislation&action=edit&section=13" title="Edit section: Notes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-columns references-column-width" style="column-width: 30em;"> <ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">OECD Employment Outlook, June 1999, Chapter 2, <i>Employment Protection and Labour Market Performances</i>, page 50.</span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">OECD Employment Outlook, June 1999, Chapter 2, <i>Employment Protection and Labour Market Performances</i>, page 51.</span> </li> <li id="cite_note-Barone2001-3"><span class="mw-cite-backlink">^ <a href="#cite_ref-Barone2001_3-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Barone2001_3-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Barone2001_3-2"><sup><i><b>c</b></i></sup></a> <a href="#cite_ref-Barone2001_3-3"><sup><i><b>d</b></i></sup></a></span> <span class="reference-text">Barone, Andrea (2001): <i>Employment protection legislation: a critical review of the literature</i>. Taken from www.cesifin.it <a rel="nofollow" class="external autonumber" href="http://www.cesifin.it/doc?_FP_REP_ID=000069.barone%20copy.pdf&_VP_MAIN_OBJECT_TW_NAME=com.twproject.content.CONTENT">[1]</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20070930040030/http://www.cesifin.it/doc?_FP_REP_ID=000069.barone%20copy.pdf&_VP_MAIN_OBJECT_TW_NAME=com.twproject.content.CONTENT">Archived</a> 2007-09-30 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>.</span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">For a detailed description of this procedure, see OECD, Employment Outlook 1999, Chapter 2, Annex 2.B.</span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text">OECD Employment Outlook 2004, Chapter 2, <i>Employment Protection Regulation and Labour Market Performance</i>.</span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">Blanchard, O. and Pedro Portugal (2000): <i>What hides behind an unemployment rate: Comparing Portuguese and U.S. labor markets</i>. The American Economic Review, Vol. 91, No. 1. (Mar., 2001), pp. 187–207.</span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text">Nickell, Stephen (1997): <i>Unemployment and Labor Market Rigidities: Europe versus North America</i>. The Journal of Economic Perspectives, Vol. 11, No. 3. (Summer, 1997), pp. 55–74.</span> </li> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text">Lazear, Edward P. (1990): <i>Job Security Provisions and Employment</i>. The Quarterly Journal of Economics, Vol. 105, No. 3. (Aug., 1990), pp. 699–726.</span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text">Lazear, Edward P. (1990): <i>Job Security Provisions and Employment</i>. The Quarterly Journal of Economics, Vol. 105, No. 3. (Aug., 1990), pp. 699–726.</span> </li> <li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text">Bentolila, Samuel and Giuseppe Bertola (1990): <i>Firing Costs and Labour Demand: How Bad is Eurosclerosis?</i>. The Review of Economic Studies, Vol. 57, No. 3. (Jul., 1990), pp. 381–402.</span> </li> <li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text">Lazear, Edward (1990): <i>Job Security Provisions and Employment</i>. Quarterly Journal of Economics, 105(3): 699–726.</span> </li> <li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text">Leonardi, Marco and Giovanni Pica (2006): <i>Effects of Employment Protection Legislation on Wages: a Regression Discontinuity Approach</i>. IZA Working Papers. Downloadable <a rel="nofollow" class="external autonumber" href="http://www.iza.org/conference_files/TAM2006/pica_g1513.pdf">[2]</a>.</span> </li> <li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text">Brancaccio, Emiliano and Nadia Garbellini, and Raffaele Giammetti (2018): <i>Structural labour market reforms, GDP growth and the functional distribution of income</i>. Structural Change and Economic Dynamics Volume 44, March 2018, Pages 34-45. <a rel="nofollow" class="external free" href="https://doi.org/10.1016/j.strueco.2017.09.001">https://doi.org/10.1016/j.strueco.2017.09.001</a>.</span> </li> <li id="cite_note-14"><span class="mw-cite-backlink"><b><a href="#cite_ref-14">^</a></b></span> <span class="reference-text">Nicoletti, Giuseppe; Stefano Scarpetta and Olivier Boylaud (2000): <i>Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation</i>. OECD Economics Department Working Papers NO. 226, April 13, 2000, p.51. Downloadable <a rel="nofollow" class="external autonumber" href="http://www.oecd.org/dataoecd/21/13/1880867.pdf">[3]</a></span> </li> <li id="cite_note-15"><span class="mw-cite-backlink"><b><a href="#cite_ref-15">^</a></b></span> <span class="reference-text">Kugler, Adriana and Giovanni Pica (2003): <i>Effects of Employment Protection and Product Market Regulations on the Italian Labor Market</i>. Journal of Economic Literature, November 12, 2003, p. 7. Downloadable <a rel="nofollow" class="external autonumber" href="http://www.uh.edu/~adkugler/lpmr51.pdf">[4]</a>.</span> </li> <li id="cite_note-16"><span class="mw-cite-backlink"><b><a href="#cite_ref-16">^</a></b></span> <span class="reference-text">Koeniger, Winfried and Andrea Vindigni (2003): <i>Employment Protection and Product Market Regulation</i>. IZA WZB Economics Seminar Series. July 28, 2003. 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The University of Chicago Press, (1994)</span> </li> <li id="cite_note-18"><span class="mw-cite-backlink"><b><a href="#cite_ref-18">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFPissarides2001" class="citation journal cs1">Pissarides, Christopher A (2001). "Employment protection". <i>Labour Economics</i>. <b>8</b> (2): 131–159. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fs0927-5371%2801%2900032-x">10.1016/s0927-5371(01)00032-x</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0927-5371">0927-5371</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Labour+Economics&rft.atitle=Employment+protection&rft.volume=8&rft.issue=2&rft.pages=131-159&rft.date=2001&rft_id=info%3Adoi%2F10.1016%2Fs0927-5371%2801%2900032-x&rft.issn=0927-5371&rft.aulast=Pissarides&rft.aufirst=Christopher+A&rfr_id=info%3Asid%2Fen.wikipedia.org%3AEmployment+protection+legislation" class="Z3988"></span></span> </li> <li id="cite_note-19"><span class="mw-cite-backlink"><b><a href="#cite_ref-19">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFAlvarezVeracierto2001" class="citation journal cs1">Alvarez, Fernando; Veracierto, Marcelo (2001). 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Lessons from Germany, France and Belgium. In Blank R.M. (ed.) Social Protection versus Economic Flexibility: Is there a trade-off?. The University of Chicago Press, (1994)</li> <li><a href="/w/index.php?title=Andrea_Barone&action=edit&redlink=1" class="new" title="Andrea Barone (page does not exist)">Andrea Barone</a> (2001): Employment protection legislation: a critical review of the literature. Taken from www.cesifin.it[5].</li> <li><a href="/w/index.php?title=Samuel_Bentolila&action=edit&redlink=1" class="new" title="Samuel Bentolila (page does not exist)">Samuel Bentolila</a> and Giuseppe Bertola (1990): Firing Costs and Labour Demand: How Bad is Eurosclerosis?. The Review of Economic Studies, Vol. 57, No. 3. (Jul., 1990), pp. 381–402.</li> <li><a href="/wiki/Olivier_Blanchard" title="Olivier Blanchard">Olivier Blanchard</a> and Pedro Portugal (2000): What hides behind an unemployment rate: Comparing Portuguese and U.S. labor markets. The American Economic Review, Vol. 91, No. 1. (Mar., 2001), pp. 187–207.</li> <li><a href="/w/index.php?title=Winfried_Koeniger&action=edit&redlink=1" class="new" title="Winfried Koeniger (page does not exist)">Winfried Koeniger</a> and Andrea Vindigni (2003): Employment Protection and Product Market Regulation. IZA WZB Economics Seminar Series. July 28, 2003. Downloadable [8].</li> <li><a href="/wiki/Adriana_Kugler" title="Adriana Kugler">Adriana Kugler</a> and Giovanni Pica (2003): Effects of Employment Protection and Product Market Regulations on the Italian Labor Market. Journal of Economic Literature, November 12, 2003, p. 7. Downloadable [7].</li> <li><a href="/wiki/Edward_Lazear" title="Edward Lazear">Edward Lazear</a> (1990): Job Security Provisions and Employment. Quarterly Journal of Economics, 105(3): 699–726.</li> <li><a href="/wiki/Marco_Leonardi" title="Marco Leonardi">Marco Leonardi</a> and Giovanni Pica (2006): Effects of Employment Protection Legislation on Wages: a Regression Discontinuity Approach. IZA Working Papers. Downloadable [4].</li> <li><a href="/wiki/Stephen_Nickell" title="Stephen Nickell">Stephen Nickell</a> (1997): Unemployment and Labor Market Rigidities: Europe versus North America. The Journal of Economic Perspectives, Vol. 11, No. 3. (Summer, 1997), pp. 55–74.</li> <li><a href="/w/index.php?title=Giuseppe_Nicoletti&action=edit&redlink=1" class="new" title="Giuseppe Nicoletti (page does not exist)">Giuseppe Nicoletti</a>, Stefano Scarpetta and Olivier Boylaud (2000): Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation. OECD Economics Department Working Papers NO. 226, April 13, 2000, p. 51. Downloadable [6]</li></ul>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?type=1x1" alt="" width="1" height="1" style="border: none; position: absolute;"></noscript> <div class="printfooter" data-nosnippet="">Retrieved from "<a dir="ltr" href="https://en.wikipedia.org/w/index.php?title=Employment_protection_legislation&oldid=1144306203">https://en.wikipedia.org/w/index.php?title=Employment_protection_legislation&oldid=1144306203</a>"</div></div> <div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Help:Category" title="Help:Category">Categories</a>: <ul><li><a href="/wiki/Category:Labour_law" title="Category:Labour law">Labour law</a></li><li><a href="/wiki/Category:Unemployment" title="Category:Unemployment">Unemployment</a></li></ul></div><div id="mw-hidden-catlinks" class="mw-hidden-catlinks mw-hidden-cats-hidden">Hidden categories: <ul><li><a href="/wiki/Category:Webarchive_template_wayback_links" title="Category:Webarchive template wayback links">Webarchive template wayback links</a></li><li><a href="/wiki/Category:All_articles_with_dead_external_links" title="Category:All articles with dead external links">All articles with dead external links</a></li><li><a href="/wiki/Category:Articles_with_dead_external_links_from_August_2019" title="Category:Articles with dead external links from August 2019">Articles with dead external links from August 2019</a></li><li><a href="/wiki/Category:Articles_with_permanently_dead_external_links" title="Category:Articles with permanently dead external links">Articles with permanently dead external links</a></li><li><a href="/wiki/Category:All_articles_with_unsourced_statements" title="Category:All articles with unsourced statements">All articles with unsourced statements</a></li><li><a href="/wiki/Category:Articles_with_unsourced_statements_from_November_2009" title="Category:Articles with unsourced statements from November 2009">Articles with unsourced statements from November 2009</a></li></ul></div></div> </div> </main> </div> <div class="mw-footer-container"> <footer id="footer" class="mw-footer" > <ul id="footer-info"> <li id="footer-info-lastmod"> This page was last edited on 13 March 2023, at 00:27<span class="anonymous-show"> (UTC)</span>.</li> <li id="footer-info-copyright">Text is available under the <a href="/wiki/Wikipedia:Text_of_the_Creative_Commons_Attribution-ShareAlike_4.0_International_License" title="Wikipedia:Text of the Creative Commons Attribution-ShareAlike 4.0 International License">Creative Commons Attribution-ShareAlike 4.0 License</a>; additional terms may apply. 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