Different paths towards Flexibility, Deregulated employment protection or temporary employment?
There are numerous debates on the need to increase flexibility through deregulation of employment protection. Many believe it is essential in generating employment but it is also believed to generate �socially unacceptable� flexible jobs. However, recent studies point to strict regulations on firing permanent workers as the cause of increase in the shares of temporary employment. In other words, stringent protective regulations are not only a source of rigidity, but also force employers to increase flexibility in the labour market through other means. This study explores this hypothesis by examining various aspects of employment protection legislation in concomitance with other competing factors, including structural changes and labour market institutional factors, to explain the cross-national variance of temporary employment across 19 OECD countries using quantitative data. The results show that high cost of firing workers on permanent contracts is the most important factor that explains the high shares of temporary employment. This implies that there are two different ways in which flexibility has been introduced. Either introducing flexibility throughout the labour market using relaxed regulations on firing regular workers, or securing the core workers with high firing cost for regular workers while allowing for flexibility through the use of temporary employment.
|Date of creation:||Aug 2005|
|Date of revision:||Oct 2005|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan F, 2001.
"Drawing Lessons From the Boom of Temporary Jobs in Spain,"
CEPR Discussion Papers
2884, C.E.P.R. Discussion Papers.
- Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages F270-F295, June.
- Juan José Dolado & Carlos García-Serrano & Juan F. Jimeno, . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Working Papers 2001-11, FEDEA.
- Castles, Francis G., 2004. "The Future of the Welfare State: Crisis Myths and Crisis Realities," OUP Catalogue, Oxford University Press, number 9780199273928, December.
- Lawrence M. Kahn, 2007.
"The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence,"
Royal Economic Society, vol. 117(521), pages 333-356, 06.
- Kahn, Lawrence M., 2005. "The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence," IZA Discussion Papers 1548, Institute for the Study of Labor (IZA).
- Holmlund, Bertil & Storrie, Donald, 2001.
"Temporary Work in Turbulent Times: The Swedish Experience,"
Working Paper Series
2002:1, Uppsala University, Department of Economics.
- Bertil Holmlund & Donald Storrie, 2002. "Temporary Work In Turbulent Times: The Swedish Experience," Economic Journal, Royal Economic Society, vol. 112(480), pages F245-F269, June.
- Bertil Holmlund & Donald Storrie, 2002. "Temporary Work in Turbulent Times: The Swedish Experience," CESifo Working Paper Series 671, CESifo Group Munich.
- Maia Güell, 2003.
"Fixed-term Contracts and the Duration Distribution of Unemployment,"
105, Barcelona Graduate School of Economics.
- Güell, Maia, 2003. "Fixed-Term Contracts and the Duration Distribution of Unemployment," IZA Discussion Papers 791, Institute for the Study of Labor (IZA).
- Maia Güell, 2001. "Fixed-Term Contracts and the Duration Distribution of Unemployment," CEP Discussion Papers dp0505, Centre for Economic Performance, LSE.
- Güell, Maia, 2002. "Fixed-Term Contracts and the Duration Distribution of Unemployment," CEPR Discussion Papers 3264, C.E.P.R. Discussion Papers.
- Maia Güell, 2002. "Fixed-term contracts and the duration distribution of unemployment," Economics Working Papers 602, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2003.
- Maia Guell, 2001. "Fixed-term contracts and the duration distribution of unemployment," LSE Research Online Documents on Economics 20122, London School of Economics and Political Science, LSE Library.
- Frank Dietrich & Hartmut Kliemt & Michael Imhoff, 2002. "Introduction," Homo Oeconomicus, Institute of SocioEconomics, vol. 19, pages 7-8.
- Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
- Cahuc, Pierre & Postel-Vinay, Fabien, 2002.
"Temporary jobs, employment protection and labor market performance,"
Elsevier, vol. 9(1), pages 63-91, February.
- Cahuc, Pierre & Postel-Vinay, Fabien, 2001. "Temporary Jobs, Employment Protection and Labor Market Performance," IZA Discussion Papers 260, Institute for the Study of Labor (IZA).
- Lechner, Michael & Pfeiffer, Friedhelm & Spengler, Hannes & Almus, Matthias, 2000. "The impact of non-profit temping agencies on individual labour market success in the West German state of Rhineland-Palatinate," ZEW Discussion Papers 00-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Petrongolo, Barbara & Güell-Rotllan, Maia, 1998. "The transition of workers from temporary to permanent employment: The Spanish case," UC3M Working papers. Economics 6080, Universidad Carlos III de Madrid. Departamento de Economía.
- Pissarides, Christopher A., 2001. "Employment protection," Labour Economics, Elsevier, vol. 8(2), pages 131-159, May.
- Sapir, André, 2000. "Who is Afraid of Globalization? The Challenge of Domestic Adjustment in Europe and America," CEPR Discussion Papers 2595, C.E.P.R. Discussion Papers.
- Luca Nunziata & Stefano Staffolani, 2007. "Short-Term Contracts Regulations And Dynamic Labour Demand: Theory And Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(1), pages 72-104, 02.
- Alison L Booth & Juan J. Dolado & Jeff Frank, 2002. "Symposium On Temporary Work Introduction," Economic Journal, Royal Economic Society, vol. 112(480), pages F181-F188, June.
- Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
- Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57, January.
- Ham, John C & Rea, Samuel A, Jr, 1987. "Unemployment Insurance and Male Unemployment Duration in Canada," Journal of Labor Economics, University of Chicago Press, vol. 5(3), pages 325-53, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:2396. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.