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Employment Protection Legislation And The Growth Of The Service Sector In The European Union

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  • Piotr Zientara

Abstract

In modern developed economies it is the service sector that generates jobs. In Anglo‐Saxon economies, where employment protection legislation is low and unions comparatively weak, services account for three‐quarters of income and four‐fifths of jobs. Yet in France, Germany and Italy, where the reverse is true, the service sector accounts for much less of the economy in terms of income and jobs. This article shows that employment protection legislation – defended by trade unions still dominating manufacturing in continental Europe – results in higher unemployment rates and also negatively affects the growth of services.

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  • Piotr Zientara, 2006. "Employment Protection Legislation And The Growth Of The Service Sector In The European Union," Economic Affairs, Wiley Blackwell, vol. 26(4), pages 46-52, December.
    • Handle: RePEc:bla:ecaffa:v:26:y:2006:i:4:p:46-52
    DOI: 10.1111/j.1468-0270.2006.00669.x
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    References listed on IDEAS

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    1. Jacques Pelkmans & Jean-Pierre Casey, 2004. "Can Europe Deliver Growth? The Sapir Report and Beyond," Bruges European Economic Policy Briefings 6, European Economic Studies Department, College of Europe.
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    3. Pissarides, Christopher A., 2001. "Employment protection," Labour Economics, Elsevier, vol. 8(2), pages 131-159, May.
    4. Mary Amiti & Shang-Jin Wei, 2005. "Service Offshoring, Productivity, and Employment: Evidence from the United States," IMF Working Papers 2005/238, International Monetary Fund.
    5. W. S. Siebert, 2005. "Labour Market Regulation: Some Comparative Lessons," Economic Affairs, Wiley Blackwell, vol. 25(3), pages 3-10, September.
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    1. Piotr Zientara, 2008. "Employment Of Older Workers In Poland: Issues And Policy Implications," Economic Affairs, Wiley Blackwell, vol. 28(4), pages 62-67, December.
    2. Zientara, Piotr, 2008. "The employment of older workers in Poland: Issues and policy implications," IEA Discussion Papers 19, Institute of Economic Affairs (IEA).

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