Employment protection legislation in transition and emerging markets

Alexander Muravyev
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Alexander Muravyev: St Petersburg State University, Russian Federation, and IZA, Germany
Authors registered in the RePEc Author Service: Александр Муравьев

IZA World of Labor, 2014, No 63, 63

Abstract: Employment protection legislation aims to shield employees against unfair dismissal and earning reductions at the time of job loss. Theory suggests that employment protection stabilizes employment over cyclical upturns and downturns without necessarily increasing general unemployment. However, recent evidence from transition and emerging economies shows that employment protection legislation tends to raise unemployment among disadvantaged groups, particularly youth, and may increase informal work. Employment protection policies thus require careful consideration of their unintended effects.

Keywords: employment protection; unemployment; informality; transition and emerging economies (search for similar items in EconPapers)
JEL-codes: J68 K31 P20 (search for similar items in EconPapers)
Date: 2014
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