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Do labor market policies affect employment composition? Lessons from European countries

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Abstract

We study the effects of different labor market policies on employment composition in a matching model with salaried work and self-employment. We empirically assess some of the model’s predictions using micro data from the European Union Household Panel. Policies such as employment protection legislation and compulsory social security contributions of the self-employed, and their interactions, are relevant to explain the composition of employment in the European labor market. One major policy implication of this result is the need for a convenient policy mix definition.

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  • António R. Antunes, 2007. "Do labor market policies affect employment composition? Lessons from European countries," Working Papers w200721, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w200721
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    1. Di Tella, Rafael & MacCulloch, Robert, 2005. "The consequences of labor market flexibility: Panel evidence based on survey data," European Economic Review, Elsevier, vol. 49(5), pages 1225-1259, July.
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    Cited by:

    1. Álvaro A. Novo & Mário Centeno & Carla Machado, 2007. "Job Creation and Destruction in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. Sara Serra, 2016. "Temporary contracts' transitions: the role of training and institutions," Working Papers w201611, Banco de Portugal, Economics and Research Department.
    3. Sara Serra, 2015. "Temporary contracts’ transitions: the role of training and institutions," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.

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