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Employment Protection Legislation and Labor Markets in Transition: Assessing the Effects of the Labor Code in Armenia

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  • Christopher A. Hartwell

Abstract

The effects of employment protection legislation (EPL) on a country's labor market are clear in theory but empirical evidence is only starting to catch up. In particular, EPL is not robust as an indicator of overall unemployment, but previous panel data analyses have shown it affects the flow of workers into and out of employment. Examining monthly and quarterly data from Armenia, I find that the country's package of EPL has this same effect, and worker flows have slowed under the country's new Labor Code. The paradox of where Armenia's workforce is going still remains but can be hypothesized as entering the informal sector.

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Bibliographic Info

Article provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.

Volume (Year): 7 (2010)
Issue (Month): 2 (December)
Pages: 413-445

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Handle: RePEc:liu:liucej:v:7:y:2010:i:2:p:413-445

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Keywords: employment protection legislation; labor markets; transition;

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  1. Olivier Jean Blanchard & Lawrence Katz, 1999. "Wage Dynamics: Reconciling Theory and Evidence," NBER Working Papers 6924, National Bureau of Economic Research, Inc.
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  8. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  9. Adriana Kugler adkugler@uh.edu & Giovanni Pica, 2005. "The Effects of Employment Protection on the Italian Labour Market," CSEF Working Papers 135, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  10. John T. Addison & Paulino Teixeira, 2003. "The Economics of Employment Protection," Journal of Labor Research, Transaction Publishers, vol. 24(1), pages 85-129, January.
  11. Hartwell, Christopher A, 2010. "Employment Protection Legislation and Labor Markets in Transition: Assessing the Effects of the Labor Code in Armenia," MPRA Paper 40259, University Library of Munich, Germany.
  12. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
  13. Sandrine Cazes & Alena Nesporova, 2004. "Labour markets in transition: balancing flexibility and security in Central and Eastern Europe," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 23-54.
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Cited by:
  1. Christopher A. Hartwell, 2010. "Employment Protection Legislation and Labor Markets in Transition: Assessing the Effects of the Labor Code in Armenia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(2), pages 413-445, December.

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