Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50391
Year of Publication: 
2009
Series/Report no.: 
KOF Working Papers No. 238
Publisher: 
ETH Zurich, KOF Swiss Economic Institute, Zurich
Abstract: 
Unionists and politicians frequently claim that globalization lowers employment protection of workers. This paper tests this hypothesis in a panel of 28 OECD countries from 1985 to 2003, differentiating between three dimensions of globalization and two labor market segments. While overall globalization is shown to loosen protection of the regularly employed, it increases regulation in the segment of limited-term contracts. We find the economic one to drive deregulation for the regularly employed, but the social one to be responsible for the better protection of workers in atypical employment. We offer political economy arguments as explanations for these differential effects.
Subjects: 
Globalization
international trade
integration
employment protection
labor standards
unions
cross-country analysis
panel data analysis
JEL: 
C33
F15
F16
J81
J83
O57
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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