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Journal of Labor Research

, Volume 24, Issue 1, pp 85–128 | Cite as

The economics of employment protection

  • John T. Addison
  • Paulino Teixeira
Articles

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 of and changes in variables. At all times potential offsets to the adverse effects of employment protection receive consideration.

Keywords

Labor Demand Union Density Employment Protection Employment Protection Legislation Labor Market Institution 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer 2003

Authors and Affiliations

  • John T. Addison
    • 1
  • Paulino Teixeira
    • 2
  1. 1.University of South CarolinaColumbia
  2. 2.Universidade de CoimbraCoimbraPortugal

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