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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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4685
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    Cited by:

    1. 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.
    2. Dan Zhou & Sibo Yang & Xue Li, 2022. "Internet Use and Job Satisfaction: Evidence from China," IJERPH, MDPI, vol. 19(19), pages 1-16, September.
    3. Christine Luecke & Andreas Knabe, 2020. "How much does others’ protection matter? Employment protection, future labour market prospects and well-being," Oxford Economic Papers, Oxford University Press, vol. 72(3), pages 893-914.
    4. 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.
    5. Jo Ritzen, 2019. "Happiness as a guide to labor market policy," IZA World of Labor, Institute of Labor Economics (IZA), pages 149-149, January.
    6. Eric Schuss, 2020. "Substantial Labor Market Effects of the Residency Status," Journal of International Migration and Integration, Springer, vol. 21(4), pages 993-1026, December.
    7. Henna Busk & Christine Dauth & Elke J. Jahn, 2017. "Do Changes in Regulation Affect Temporary Agency Workers’ Job Satisfaction?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(3), pages 514-544, July.
    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. Francesco Bartolucci & Giovanni S F Bruno & Olga Demidova & Marcello Signorelli, 2017. "Job satisfaction and compensating wage differentials: Evidence from Russia," CESifo Economic Studies, CESifo Group, vol. 63(3), pages 333-351.
    10. Dräger, Vanessa, 2015. "Do Employment Protection Reforms Affect Well-Being?," IZA Discussion Papers 9114, Institute of Labor Economics (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. Jo Ritzen, 2015. "Happiness as a guide to labor market policy," IZA World of Labor, Institute of Labor Economics (IZA), pages 149-149, May.
    13. Henrik Schwabe & Fulvio Castellacci, 2020. "Automation, workers’ skills and job satisfaction," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-26, November.
    14. Lücke, Christine, 2017. "How much does others’ protection matter? Employment protection and well-being," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168096, Verein für Socialpolitik / German Economic Association.
    15. 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.
    16. Virginia Gunn & Bertina Kreshpaj & Nuria Matilla-Santander & Emilia F. Vignola & David H. Wegman & Christer Hogstedt & Emily Q. Ahonen & Theo Bodin & Cecilia Orellana & Sherry Baron & Carles Muntaner , 2022. "Initiatives Addressing Precarious Employment and Its Effects on Workers’ Health and Well-Being: A Systematic Review," IJERPH, MDPI, vol. 19(4), pages 1-35, February.
    17. Joan Torrent-Sellens & Jackeline Velazco-Portocarrero & Clara Viñas-Bardolet, 2018. "Knowledge-Based Work and Job Satisfaction: Evidence from Spain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 575-612, June.
    18. 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.
    19. Joern H. Block & José María Millán & Concepción Román & Haibo Zhou, 2015. "Job Satisfaction and Wages of Family Employees," Entrepreneurship Theory and Practice, , vol. 39(2), pages 183-207, March.
    20. Clara Viñas-Bardolet & Joan Torrent-Sellens & Mònica Guillen-Royo, 2020. "Knowledge Workers and Job Satisfaction: Evidence from Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 256-280, March.
    21. 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).

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    More about this item

    Keywords

    employment protection legislation; temporary employment; job satisfaction;
    All these keywords.

    JEL classification:

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

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