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The Effects of Employment Protection Legislationon Personnel Policies: A Review of Theoretical Modelsand Empirical Results

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  • O. Mironenko

Abstract

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.

Suggested Citation

  • O. Mironenko, 2014. "The Effects of Employment Protection Legislationon Personnel Policies: A Review of Theoretical Modelsand Empirical Results," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 3.
    • Handle: RePEc:nos:voprec:y:2014:id:627
    DOI: 10.32609/0042-8736-2014-3-126-140
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