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Employment Protection Legislation and Labor Markets in Transition: Assessing the Effects of the Labor Code in Armenia

Christopher Hartwell

European Journal of Comparative Economics, 2010, vol. 7, issue 2, 413-445

Abstract: The effects of employment protection legislation (EPL) on a country's labor market are clear in theory but empirical evidence is only starting to catch up. In particular, EPL is not robust as an indicator of overall unemployment, but previous panel data analyses have shown it affects the flow of workers into and out of employment. Examining monthly and quarterly data from Armenia, I find that the country's package of EPL has this same effect, and worker flows have slowed under the country's new Labor Code. The paradox of where Armenia's workforce is going still remains but can be hypothesized as entering the informal sector.

Keywords: employment protection legislation; labor markets; transition (search for similar items in EconPapers)
JEL-codes: J63 P36 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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European Journal of Comparative Economics is currently edited by Matteo Migheli, Giovanni Ramello, Koji Domon, Peter Grajzl, David M. Kemme, Marcello Signorelli and Richard Watt

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