Job Security Provisions and Employment
European countries have enacted various job security provisions over the last thirty years. Employers are required to pay workers on separation or to give advance notice of termination. In anything less than a perfectly functioning market, there are effects of the provisions on employment. Incumbents are more likely to retain their jobs, but new workers are less likely to be hired. An examination of the European data suggests that severance pay requirements reduce employment. Copyright 1990, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Volume (Year): 105 (1990)
Issue (Month): 3 (August)
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