Dual employment protection legislation
Subtitle: a framework for analysis
By: by Juan José Dolado, Marcel Jansen, Juan F. Jimeno.
Contributors: Jansen, Marcel
Series: Discussion paper ;; no. 1564; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1564
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Employees -- Dismissal of -- Case studies.; Discrimination in employment -- Case studies.; Labor laws and legislation -- Case studies.; Labor supply -- Case studies.
Genres: Case studies.
Description: "In many countries, Employment Protection Legislation (EPL) establishes different regulations for certain groups of workers who face more disadvantages in the labor market (young workers, women, unskilled workers, etc.) with the aim of improving their employability. Well-known examples are the introduction of atypical employment contracts (e.g. temporary and determined-duration contracts) which ease firing restrictions for some, but not all, workers. This paper discusses the effects of EPL varying among workers of different skills on the level and composition of unemployment, job flows, productivity and welfare. By using an extension of Mortensen-Pissarides' (1994) search model where heterogeneous workers compete for the same jobs, we are able to identify several key channels through which changing firing costs for some groups of workers affects hiring and firing of all workers and, hence, may have a different impact on aggregate labor market variables than reducing firing costs across the board. Some analytical and simulation results also show that these effects of differentiated firing costs by workers' skills may be different depending upon the initial state of the labor market"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 4/13/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.