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Labour contract regulations and workers' wellbeing: International longitudinal evidence

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  • Salvatori, Andrea

Abstract

All industrialized countries have employment protection legislation (EPL) for permanent workers and restrictions on the use of temporary employment (RTE). The (ambiguous) effects of these on the levels of employment and unemployment have been extensively studied, but nothing is known empirically about their wellbeing implications. Using longitudinal data from the European Community Household Panel, the author conducts the first study of the link between both EPL and RTE and workers' wellbeing. The results provide evidence that both permanent and temporary employees gain from reforms that ease restrictions on temporary employment but leave firing costs for permanent workers unchanged. This finding contrasts with common claims found in the political economy literature.

Suggested Citation

  • Salvatori, Andrea, 2010. "Labour contract regulations and workers' wellbeing: International longitudinal evidence," Labour Economics, Elsevier, vol. 17(4), pages 667-678, August.
  • Handle: RePEc:eee:labeco:v:17:y:2010:i:4:p:667-678
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    Cited by:

    1. Jo Ritzen, 2015. "Happiness as a guide to labor market policy," IZA World of Labor, Institute for the Study of Labor (IZA), pages 149-149, May.
    2. Lücke, Christine, 2017. "How much does others’ protection matter? Employment protection and well-being," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168096, Verein für Socialpolitik / German Economic Association.
    3. Moreno Baruffini & Federica Origo, 2014. "Job satisfaction and flexicurity over the business cycle: evidence from Swiss individual-level data," ERSA conference papers ersa14p366, European Regional Science Association.
    4. Henna Busk & Elke J. Jahn & Christine Singer, 2015. "Do Changes in Regulation Affect Temporary Agency Workers' Job Satisfaction?," SOEPpapers on Multidisciplinary Panel Data Research 732, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Cifuentes, Myriam Patricia & Doogan, Nathan J. & Fernandez, Soledad A. & Seiber, Eric E., 2016. "Factors shaping Americans’ objective well-being: A systems science approach with network analysis," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1018-1039.
    6. Jo Ritzen & Klaus Zimmermann, 2014. "A vibrant European labor market with full employment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    7. Dräger, Vanessa, 2015. "Do Employment Protection Reforms Affect Well-Being?," IZA Discussion Papers 9114, Institute for the Study of Labor (IZA).
    8. Fulvio Castellacci & Clara Viñas-Bardolet, 2017. "Internet use and job satisfaction," Working Papers on Innovation Studies 20170126, Centre for Technology, Innovation and Culture, University of Oslo.
    9. repec:bla:indres:v:56:y:2017:i:3:p:514-544 is not listed on IDEAS
    10. You, Jing & Wang, Shaoyang, 2016. "Unemployment Duration and Job-Match Quality in Urban China: The Dynamic Impact of 2008 Labor Contract Law," MPRA Paper 72767, University Library of Munich, Germany.

    More about this item

    Keywords

    Employment protection legislation Temporary employment Wellbeing Job satisfaction;

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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