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Globalization and Protection of Employment

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Author Info
Justina A.V. Fischer () (OECD, ELS/SPD, Paris and Universitaet Hohenheim, Stuttgart)
Frank Somogyi () (KOF Swiss Economic Institute, ETH Zurich, Switzerland)

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Abstract

Unionists and politicians frequently claim that globalization lowers employment protection of workers. This paper tests this hypothesis in a panel of 28 OECD countries from 1985 to 2003, differentiating between three dimensions of globalization and two labor market segments. While overall globalization is shown to loosen protection of the regularly employed, it increases regulation in the segment of limited-term contracts. We find the economic one to drive deregulation for the regularly employed, but the social one to be responsible for the better protection of workers in atypical employment. We offer political economy arguments as explanations for these differential effects.

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Publisher Info
Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 09-238.

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Length: 59 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:kof:wpskof:09-238

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Related research
Keywords: Globalization; international trade; integration; employment protection; labor standards; unions; cross-country analysis; panel data analysis;

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
F15 - International Economics - - Trade - - - Economic Integration
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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    Other versions:
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