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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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References

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  1. 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).
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  6. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
  7. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, American Economic Association, vol. 91(1), pages 187-207, March.
  8. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(3), pages 699-726, August.
  9. Addison, John T. & Teixeira, Paulino, 2001. "The Economics of Employment Protection," IZA Discussion Papers 381, Institute for the Study of Labor (IZA).
  10. Adriana Kugler adkugler@uh.edu & Giovanni Pica, 2005. "The Effects of Employment Protection on the Italian Labour Market," CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy 135, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  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. 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, Presses de Sciences-Po, vol. 91(5), pages 23-54.
  13. Giuseppe Nicoletti & Stefano Scarpetta, 2005. "Product Market Reforms and Employment in OECD Countries," OECD Economics Department Working Papers 472, OECD Publishing.
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Cited by:
  1. 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.
  2. World Bank, 2013. "Republic of Armenia : Accumulation, Competition, and Connectivity," World Bank Other Operational Studies 16781, The World Bank.

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