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Labour Contract Regulations and Workers' Wellbeing: International Longitudinal Evidence

  • Salvatori, Andrea

    ()

    (ISER, University of Essex)

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 well-being 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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4685.

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Length: 45 pages
Date of creation: Jan 2010
Date of revision:
Publication status: published in: Labour Economics, 2010, 17 (4), 667-678
Handle: RePEc:iza:izadps:dp4685
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