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The Political Economy of Two-tier Reforms of Employment Protection in Europe

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  • Wolfgang Ochel

Abstract

Reforms of employment protection (EPL) in Europe eased the recourse to temporary forms of employment while not reducing the strictness of EPL of permanent jobs (with the exception of Spain). Since 1990, such two-tier reforms have been implemented in Belgium, Denmark, Germany, Greece, Italy, the Netherlands and Sweden. The paper seeks to show why two-tier reforms of EPL have taken place in some countries and have failed on other occasions. This isdone by having a loser look at the history of national reform processes. In addition the paper seeks to determine whether two-tier reforms later led to EPL reforms for permanent jobs.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2008/wp-cesifo-2008-11/cesifo1_wp2461.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2461.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2461

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Related research

Keywords: employment protection; two-tier reforms; political economy;

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References

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  1. Torben M. Andersen & Michael Svarer, 2007. "Flexicurity: Labour Market Performance in Denmark," CESifo Economic Studies, CESifo, vol. 53(3), pages 389-429, September.
  2. Alesina, A. & Drazen, A., 1991. "Why Are Stabilizations Delayed?," Papers 6-91, Tel Aviv - the Sackler Institute of Economic Studies.
  3. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2005. "Temporary Work Agencies in Italy: A Springboard Toward Permanent Employment?," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 1-27, September.
  4. Eichhorst, Werner, 2007. "The Gradual Transformation of Continental European Labor Markets: France and Germany Compared," IZA Discussion Papers 2675, Institute for the Study of Labor (IZA).
  5. Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages F245-F269, June.
  6. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers 2884, C.E.P.R. Discussion Papers.
  7. Eichhorst, Werner & Konle-Seidl, Regina, 2005. "The Interaction of Labor Market Regulation and Labor Market Policies in Welfare State Reform," IZA Discussion Papers 1718, Institute for the Study of Labor (IZA).
  8. Anja Deelen & Egbert Jongen & Sabine Visser, 2006. "Employment protection legislation; lessons from theoretical and empirical studies for the Dutch case," CPB Document 135, CPB Netherlands Bureau for Economic Policy Analysis.
  9. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-55, December.
  10. Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute.
  11. W. J. Henisz, 2000. "The Institutional Environment for Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 1-31, 03.
  12. Micael Castanheira De Moura & Stéphane Carcillo & Vincenzo Galasso & Giuseppe Nicoletti & Enrico Perotti & Lidia Tsyganok, 2006. "How to gain political support for reforms?," ULB Institutional Repository 2013/10019, ULB -- Universite Libre de Bruxelles.
  13. Giuseppe Bertola & Pietro Garibaldi, 2003. "The Structure and History of Italian Unemployment," CESifo Working Paper Series 907, CESifo Group Munich.
  14. Dewatripont, M & Roland, G, 1992. "Economic Reform and Dynamic Political Constraints," Review of Economic Studies, Wiley Blackwell, vol. 59(4), pages 703-30, October.
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Cited by:
  1. Lommerud, Kjell Erik & Straume, Odd Rune, 2010. "Employment protection versus flexicurity: on technology adoption in unionised firms," CEPR Discussion Papers 7919, C.E.P.R. Discussion Papers.
  2. Caroleo Floro Ernesto & Pastore Francesco, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107.
  3. Johan Bo Davidsson, 2011. "An Analytical Overview of Labour Market Reforms Across the EU: Making Sense of the Variation," LABORatorio R. Revelli Working Papers Series 111, LABORatorio R. Revelli, Centre for Employment Studies.
  4. Van Vliet, Olaf & Nijboer, Henk, 2012. "Flexicurity in the European Union: flexibility for outsiders, security for insiders," MPRA Paper 37012, University Library of Munich, Germany.

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