Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21241
Authors: 
Addison, John T.
Teixeira, Paulino
Year of Publication: 
2001
Series/Report no.: 
IZA Discussion paper series 381
Abstract: 
Empirical investigation of the labor market consequences of employment protection has mushroomed since Lazear's (1990) pioneering study. Having sketched the theoretical background, we chart the course of the modern empirical literature. We focus mainly on dismissals protection, distinguishing between the themes of employment and unemployment development and labor market dynamics proper. Our discussion of employment and unemployment largely deals with the effect of employment protection on levels of these outcome indicators. We distinguish between overall and compositional effects (e.g., by demographic group and type of contract), between developing and industrialized nations, and identify some key control variables. Our discussion of labor market dynamics focuses on the speed of adjustment issue and on gross flows. It also formalizes the link between analyses of levels and changes in variables. At all times potential offsets to the adverse effects of employment protection receive consideration.
Subjects: 
Severance pay
employment protection indices
labor standards
employment
unemployment
employment adjustment
gross flows
JEL: 
E24
J23
J65
Document Type: 
Working Paper

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