IDEAS home Printed from https://ideas.repec.org/a/sae/ecoind/v35y2014i4p587-607.html

Employment protection under fire: Labour market deregulation and employment in the European Union

Author

Listed:
  • Jason Heyes

    (Sheffield University Management School, UK)

  • Paul Lewis

    (University of Birmingham, UK)

Abstract

Employment protections are currently being targeted by European policy makers seeking solutions to persistently high levels of unemployment and weak economic growth. This article argues that labour market deregulation is unlikely to usher in a period of renewed growth in good quality jobs. The findings point to the important role of employment protections in stemming job losses in the initial stages of the economic crisis that began in 2008, although protections have not prevented subsequent heavy job losses in the most distressed economies. The study also finds that involuntary participation in non-standard employment has increased since the crisis and shows that this has resulted in an increased risk of in-work poverty.

Suggested Citation

  • Jason Heyes & Paul Lewis, 2014. "Employment protection under fire: Labour market deregulation and employment in the European Union," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 35(4), pages 587-607, November.
  • Handle: RePEc:sae:ecoind:v:35:y:2014:i:4:p:587-607
    DOI: 10.1177/0143831X13491842
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0143831X13491842
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0143831X13491842?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
    2. Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 699-726.
    3. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    4. Jason Heyes & Paul Lewis & Ian Clark, 2012. "Varieties of capitalism, neoliberalism and the economic crisis of 2008–?," Industrial Relations Journal, Wiley Blackwell, vol. 43(3), pages 222-241, May.
    5. Horst Siebert, 1997. "Labor Market Rigidities: At the Root of Unemployment in Europe," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 37-54, Summer.
    6. Bell, David N.F. & Blanchflower, David G., 2010. "UK Unemployment in the Great Recession," National Institute Economic Review, National Institute of Economic and Social Research, vol. 214, pages 3-25, October.
    7. Carlos Jesús Fernández Rodríguez & Miguel Martínez Lucio, 2013. "Narratives, myths and prejudice in understanding employment systems: The case of rigidities, dismissals and flexibility in Spain," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 34(2), pages 313-336, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Veen, Alex & Meijerink, Jeroen & Barratt, Tom & Keegan, Anne & Goods, Caleb, 2025. "Overcoming legitimacy challenges of novel HRM practices during internationalization: The case of two food-delivery platforms," Journal of World Business, Elsevier, vol. 60(2).
    2. James Richards & Kate Sang, 2019. "The intersection of disability and in-work poverty in an advanced industrial nation: The lived experience of multiple disadvantage in a post-financial crisis UK," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 40(3), pages 636-659, August.
    3. Thomas Hastings & Jason Heyes, 2018. "Farewell to flexicurity? Austerity and labour policies in the European Union," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 39(3), pages 458-480, August.
    4. Andrew Cumbers & Karen Bilsland & Robert McMaster & Susana Cabaço & Michael White, 2023. "The condition of European economic democracy: A comparative analysis of individual and collective employment rights," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(1), pages 109-137, February.
    5. Ren Bin & Lin Yi & Li Xing-Ping, 2025. "Pathways to Progress: Regulation Transformation and Social Security Enhancement in China," SAGE Open, , vol. 15(3), pages 21582440251, September.
    6. Jo McBride & Andrew Smith, 2022. "‘I feel like I’m in poverty. I don’t do much outside of work other than survive’: In-work poverty and multiple employment in the UK," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(3), pages 1440-1466, August.
    7. Bernd Brandl & Barbara Bechter, 2019. "The hybridization of national collective bargaining systems: The impact of the economic crisis on the transformation of collective bargaining in the European Union," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 40(3), pages 469-489, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sebastian Edwards & Alejandra Cox Edwards, 2000. "Economic Reforms and Labor Markets: Policy Issues and Lessons from Chile," NBER Working Papers 7646, National Bureau of Economic Research, Inc.
    2. Sabina Avdagic & Colin Crouch, 2015. "Symposium Introduction: Labour Market Reforms, Employment Performance, Employment Quality, and Changing Social Risks," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 1-5, March.
    3. Valeria Cirillo & Marta Fana & Dario Guarascio, 2017. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 211-232, August.
    4. International Monetary Fund, 2004. "Wage Compression, Employment Restrictions and Unemployment: The Case of Mauritius," IMF Working Papers 2004/205, International Monetary Fund.
    5. Jahn, Elke J., 2005. "Wie wirkt der Kündigungsschutz? (What are the effects of employment protection?)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 284-304.
    6. Howell David R. & Baker Dean & Glyn Andrew & Schmitt John, 2007. "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence," Capitalism and Society, De Gruyter, vol. 2(1), pages 1-73, May.
    7. Jason Heyes & Paul Lewis, 2015. "Relied upon for the heavy lifting: can employment protection legislation reforms lead the EU out of the jobs crisis?," Industrial Relations Journal, Wiley Blackwell, vol. 46(2), pages 81-99, March.
    8. Raul Eamets, 2004. "Labour market flows and adjustment to macroeconomic shocks in the Baltic States," Post-Communist Economies, Taylor & Francis Journals, vol. 16(1), pages 47-71.
    9. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
    10. Pedro S. Martins, 2007. "Heterogeneity In Real Wage Cyclicality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(5), pages 684-698, November.
    11. Langot, François & Quintero Rojas, Coralia, 2008. "Explaining the Evolution of Hours Worked and Employment across OECD Countries: An Equilibrium Search Approach," IZA Discussion Papers 3364, IZA Network @ LISER.
    12. repec:spo:wpmain:info:hdl:2441/6761 is not listed on IDEAS
    13. Banker, Rajiv D. & Byzalov, Dmitri & Chen, Lei (Tony), 2013. "Employment protection legislation, adjustment costs and cross-country differences in cost behavior," Journal of Accounting and Economics, Elsevier, vol. 55(1), pages 111-127.
    14. Steinar Holden & Fredrik Wulfsberg, 2014. "Wage Rigidity, Inflation, and Institutions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 539-569, April.
    15. Djankov, Simeon & Ramalho, Rita, 2009. "Employment laws in developing countries," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 3-13, March.
    16. repec:spo:wpecon:info:hdl:2441/6761 is not listed on IDEAS
    17. Jahn, Elke J., 2005. "Wie wirkt der Kündigungsschutz? (What are the effects of employment protection?)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 284-304.
    18. Schmitz, Patrick W., 2004. "Job protection laws and agency problems under asymmetric information," European Economic Review, Elsevier, vol. 48(5), pages 1027-1046, October.
    19. Amable, Bruno & Gatti, Donatella, 2001. "The Impact of Product Market Competition on Employment and Wages," IZA Discussion Papers 276, IZA Network @ LISER.
    20. Nunziata, Luca, 2003. "Labour market institutions and the cyclical dynamics of employment," Labour Economics, Elsevier, vol. 10(1), pages 31-53, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecoind:v:35:y:2014:i:4:p:587-607. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ekhist.uu.se/english.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.