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Globalization and protection of employment

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  • Fischer, Justina A.V.
  • Somogyi, Frank

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 economic and political globalization to drive deregulation for the regularly employed, while political and social integration appear responsible for the better protection of workers in atypical employment, outweighing the negative effect of economic integration. We offer political economy arguments as explanations for these differential effects on labor market legislation.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39426.

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Date of creation: 12 Jun 2012
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Handle: RePEc:pra:mprapa:39426

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Keywords: Globalization; International trade; Employment protection; Labor standards;

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Citations

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Cited by:
  1. Häberli, Christian & Jansen, Marion & Monteiro, José-Antonio, 2012. "Regional trade agreements and domestic labour market regulation," ILO Working Papers 470016, International Labour Organization.
  2. Zohal Hessami & Thushyanthan Baskaran, 2013. "Has Globalization Affected Collective Bargaining? An Empirical Test, 1980-2009," Working Paper Series of the Department of Economics, University of Konstanz 2013-02, Department of Economics, University of Konstanz.
  3. Niklas Potrafke, 2013. "Globalization and Labor Market Institutions: International Empirical Evidence," Ifo Working Paper Series Ifo Working Paper No. 154, Ifo Institute for Economic Research at the University of Munich.
  4. Fischer, Justina A.V., 2012. "Globalization and social networks," MPRA Paper 40404, University Library of Munich, Germany.
  5. Fischer, Justina A.V., 2013. "Globalization, female employment, and regional differences in OECD countries," MPRA Paper 45756, University Library of Munich, Germany.
  6. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy," MPRA Paper 36990, University Library of Munich, Germany.
  7. Fischer, Justina A.V., 2012. "Globalization and Political Trust," MPRA Paper 36692, University Library of Munich, Germany.
  8. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy: Extended Version," MPRA Paper 37816, University Library of Munich, Germany.

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