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Labor market regulation : international experience in promoting employment and social protection

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  • Betcherman, Gordon
  • Luinstra, Amy
  • Ogawa, Makoto

Abstract

Labor market regulation involves many aspects, ranging from how employers contract for the services of workers to the nature of the exchange, including terms of conditions of employment. This area of regulation represents an important and often controversial aspect of public policy in both developed and developing countries. Approaches are dominated by opposing views, one which favors the protection of workers through labor legislation and collective bargaining and the other which emphasizes the advantages of encouraging market processes. In the end, however, what matters are the economic and social outcomes of different approaches. This primer paper reviews different regulatory options regarding hiring and firing and wage determination and summarizes the existing knowledge about their labor market effects. It also reviews two important institutional aspects of labor market regulation -- enforcement and dispute resolution. In an annex to the paper, we summarize the statutory arrangements for various topics related to labor market regulation in 17 countries.

Suggested Citation

  • Betcherman, Gordon & Luinstra, Amy & Ogawa, Makoto, 2001. "Labor market regulation : international experience in promoting employment and social protection," Social Protection Discussion Papers and Notes 24078, The World Bank.
    • Handle: RePEc:wbk:hdnspu:24078
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    References listed on IDEAS

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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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