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Employment Protection and Productivity

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Abstract

The design of Eployment Protection Legislation (EPL) is a key factor in determining the functioning and flexibility of the labour market. In the wake of the pandemic and the rapid transformation of economies due to i.e., digitalisation, it will be more important than ever to remove impediments on labour and product markets. Multifactor productivity growth (such as work organisation, technical achievements etc.) has slowed down markedly in many countries after the financial crisis. International studies show that the design of EPL is important for productivity growth.

Suggested Citation

  • Uddén Sonnegård, Eva, 2022. "Employment Protection and Productivity," Ratio Working Papers 356, The Ratio Institute, revised 05 Sep 2022.
    • Handle: RePEc:hhs:ratioi:0356
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    More about this item

    Keywords

    Employment protection; fixed-term employment; open-ended contracts; collective agreements; collective agreements; digitalisation; multifactor productivity; labour productivity; digital-productivity paradox; automation; robotisation;
    All these keywords.

    JEL classification:

    • J59 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Other
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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