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Employment protection legislation in Croatia

Author

Listed:
  • Marina Kunovac

    (Croatian National Bank, Zagreb, Croatia)

Abstract

According to business climate and competitiveness indicators published by international organisations, Croatia is a country with a rigid labour market and a high level of the legal protection of employees. Given that an Act on Amendments to the Labour Act (OG 73/13) entered into force in Croatia in June 2013, this paper examines changes in employment protection legislation in Croatia and Central and Eastern European (CEE) countries, as well as in Croatia's main trading partners during the period between 2008 and 2013. A cross-country comparison shows a strong downward trend in legal employment protection in most CEE countries during the observed period, primarily as concerns individual dismissal in the cases of regular employment contracts, while in the case of temporary employment the protection strengthened slightly. On the other hand, despite the adoption of amendments to the Labour Act (LA), Croatian labour legislation governing employment protection for regular employment contracts remains relatively inflexible compared to that in other countries.

Suggested Citation

  • Marina Kunovac, 2014. "Employment protection legislation in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 38(2), pages 139-172.
    • Handle: RePEc:ipf:finteo:v:38:y:2014:i:2:p:139-172
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    Citations

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    Cited by:

    1. Oliver Falck & Siegfried Schönherr, 2016. "An Economic Reform Agenda for Croatia: a comprehensive economic reform package prepared for the Croatian Statehood Foundation," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 70, October.
    2. Marija Buselic & Jurica Bosna, 2019. "Defining the Unemployment Determinants of the Post-Transition Central European EU Member Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 17(1 (Spring), pages 79-103.
    3. Michael Weber, 2016. "Wage Determination and Employment Adjustment in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(01), pages 22-26, April.
    4. Jan J. Rutkowski & Claudia Oriolo & Iva Tomic & Sanja Madzarevic-Sujster, 2016. "Addressing Labor Market Duality in Croatia," World Bank Publications - Reports 33399, The World Bank Group.
    5. Timo Wollmershäuser, 2016. "Exchange Rate Policy in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(1), pages 08-11, April.
    6. Nikolic, Jelena & Rubil, Ivica & Tomić, Iva, 2017. "Pre-crisis reforms, austerity measures and the public-private wage gap in two emerging economies," Economic Systems, Elsevier, vol. 41(2), pages 248-265.
    7. Michael Weber, 2016. "Wage Determination and Employment Adjustment in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(1), pages 22-26, April.
    8. Višnja Samardžija & Ivana Skazlić & Ivana Čavar & Hrvoje Butković, 2016. "The rise of the dual labour market: fighting precarious employment in the new member states through industrial relations (PRECARIR) Country report: Croatia," Research Reports 15, Central European Labour Studies Institute (CELSI).
    9. Iva Tomic, 2020. "Employment protection reforms and labour market outcomes in the aftermath of the recession: Evidence from Croatia," Public Sector Economics, Institute of Public Finance, vol. 44(1), pages 3-39.
    10. Timo Wollmershäuser, 2016. "Exchange Rate Policy in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(01), pages 08-11, April.
    11. Marina Kunovac & Andreja Pufnik, 2015. "Features of the Labour Market and Wage Setting in Croatia: Firms Survey Results," Surveys 19, The Croatian National Bank, Croatia.

    More about this item

    Keywords

    Employment Protection Legislation Index; labour market rigidity; Labour Act; regular and temporary contracts; collective dismissals; Central and Eastern Europe; Croatia;
    All these keywords.

    JEL classification:

    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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