Employment protection : policymakers need to find the right balance between protecting workers and promoting efficient resource allocation and productivity growth

Stefano Scarpetta (OECD, France, and IZA, Germany)

Laws on hiring and firing are intended to protect workers from unfair behavior by employers, to counter imperfections in financial markets that limit workers' ability to insure themselves against job loss, and to preserve firm-specific human capital. But by imposing costs on firms' adaptation to changes in demand and technology, employment protection legislation may reduce not only job destruction but also job creation, hindering the efficient allocation of labor and productivity growth.

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Year of publication:	May 2014
Authors:	Scarpetta, Stefano
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	regulations on hirings and firings \| employment protection legislation (EPL) \| labor mobility \| reallocation of resources \| productivity growth \| Arbeitnehmerschutz \| Employment protection \| Produktivität \| Productivity \| Arbeitsproduktivität \| Labour productivity \| Allokation \| Allocation \| Arbeitsmobilität \| Labour mobility \| Kündigungsschutz \| Dismissal protection \| Theorie \| Theory \| Kündigung \| Dismissal \| Arbeitsrecht \| Labour law \| Regulierung \| Regulation \| Wirkungsanalyse \| Impact assessment

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