Impact of Labour Regulation on Unemployment: A Case Study of France, Germany, UK and USA

Prabirjit Sarkar ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the state of labour protection in four countries (UK, USA, France and Germany) during 1970-2006. It supports the contention of the legal-origin theory that UK and USA (common law countries) intervene less in the labour market and grant less protection to labourers. It also supports the proposition that the problem of unemployment is more acute in the civil law countries (France and Germany). But it finds no direct relationship between various aspects of labour regulation and unemployment rate. Hence, we conclude that the explanation of more acute unemployment problem in France and Germany should be sought elsewhere.

Keywords: law and economics; labour law; legal origin theory; unemployment rate; long-term unemployment; youth unemployment (search for similar items in EconPapers)
JEL-codes: J80 J60 K31 J50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-reg
Date: 2011
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