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Labour Contract Regulations and Workers' Wellbeing: International Longitudinal Evidence

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  • Salvatori, Andrea

    () (OECD)

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 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.

Suggested Citation

  • Salvatori, Andrea, 2010. "Labour Contract Regulations and Workers' Wellbeing: International Longitudinal Evidence," IZA Discussion Papers 4685, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4685
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    Cited by:

    1. repec:eee:ecmode:v:71:y:2018:i:c:p:220-233 is not listed on IDEAS
    2. 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.
    3. Christine Lücke & Andreas Knabe, 2018. "How Much Does Others' Protection Matter? Employment Protection, Future Labour Market Prospects and Well-Being," CESifo Working Paper Series 6936, CESifo Group Munich.
    4. 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.
    5. 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.
    6. 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).
    7. 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.
    8. Hikaru Hasegawa & Kazuhiro Ueda, 2016. "Analysis of Job Satisfaction: The Case of Japanese Private Companies," LABOUR, CEIS, vol. 30(1), pages 109-134, March.
    9. 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.
    10. Dräger, Vanessa, 2015. "Do Employment Protection Reforms Affect Well-Being?," IZA Discussion Papers 9114, Institute for the Study of Labor (IZA).
    11. 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.
    12. repec:bla:indres:v:56:y:2017:i:3:p:514-544 is not listed on IDEAS
    13. Eric Schuss, 2017. "Substantial Labor Market Effects of the Residency Status: How Important Are Initial Conditions at Arrival for Immigrants?," SOEPpapers on Multidisciplinary Panel Data Research 952, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. You, Jing & Wang, Shaoyang, 2018. "Unemployment duration and job-match quality in urban China: The dynamic impact of 2008 Labor Contract Law," Economic Modelling, Elsevier, vol. 71(C), pages 220-233.

    More about this item

    Keywords

    employment protection legislation; temporary employment; job satisfaction;

    JEL classification:

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

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