Employment Protection Legislation, Labor Courts, and Effective Firing Costs

Juan F Jimeno, Juan Mora-Sanguinetti and Martínez-Matute, Marta
Authors registered in the RePEc Author Service: Marta Martínez-Matute ()

No 12554, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Labor courts may influence firing costs. Apart from the procedural costs, there is the likelihood that labor courts declare firings as unfair or nil, which significantly increase severance payments over those established for fair dismissals by Employment Protection Legislation. In this paper we model the determinants of the wedge between mandated and effective firing costs arising from labor courts resolution of dismissals, and show how it is affected by EPL reforms, looking at recent EPL reforms in Spain (implemented in 2010 and 2012) that significantly widened the definition of fair economic dismissals.

Keywords: Employment protection legislation; Unemployment; Firing costs (search for similar items in EconPapers)
JEL-codes: J52 J53 K31 K41 (search for similar items in EconPapers)
Date: 2018-01
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://cepr.org/publications/DP12554 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12554

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP12554

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().