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Analysys Of Employment Protection Legislation: A Model With Endogenous Labour Productivity

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  • DOMENICO LISI

Abstract

This paper analyses the effects of different labour market regimes on the workers choice on effort, emphasizing the role of the Employment Protection Legislation. The different EPL are modelled through an easy theoretical pattern, characterized by endogenous labour productivity. In particular, it is analysed how the labour productivity is influenced by the incentives that the different EPL give workers. The main results highlight that the recent labour market reforms produce only a positive temporary effect on the unemployment level, as confirmed by the empirical evidence. Finally, this paper analyses a new contractual regime in order to see if it could offer a better solution in term of structural employment respect to the standard regimes.

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Bibliographic Info

Article provided by Spiru Haret University, Faculty of Accounting and Financial Management Constanta in its journal Journal of Academic Research in Economics.

Volume (Year): 4 (2012)
Issue (Month): 2 (July) ()
Pages: 209-245

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Handle: RePEc:shc:jaresh:v:4:y:2012:i:2:p:209-245

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Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=9
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Keywords: Employment Protection Legislation; Effort; Labour Productivity; Contractual Benchmark.;

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  1. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, Elsevier, vol. 1(1), pages 79-82.
  2. Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: a Honeymoon Effect?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 117(521), pages 357-385, 06.
  3. O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(480), pages F214-F244, June.
  4. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, Elsevier, vol. 34(4), pages 851-879, June.
  5. Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 57(3), pages 381-402, July.
  6. Garibaldi, Pietro, 2006. "Personnel Economics in Imperfect Labour Markets," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199280674, October.
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Cited by:
  1. Lisi, Domenico & Malo, Miguel, 2014. "Cross-Sectors Skill Intensity, Productivity and Temporary Employment," MPRA Paper 56470, University Library of Munich, Germany.
  2. Lisi, Domenico, 2009. "The Impact of Temporary Employment on Labour Productivity: Evidence from an Industry-Level Panel of EU Countries," MPRA Paper 26076, University Library of Munich, Germany.

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