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Do labor market policies affect employment composition? Lessons from European countries

António Antunes () and Mário Centeno ()

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: We study the effects of different labor market policies on employment composition in a matching model with salaried work and self-employment. We empirically assess some of the model’s predictions using micro data from the European Union Household Panel. Policies such as employment protection legislation and compulsory social security contributions of the self-employed, and their interactions, are relevant to explain the composition of employment in the European labor market. One major policy implication of this result is the need for a convenient policy mix definition.

JEL-codes: J23 (search for similar items in EconPapers)
Date: 2007
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