Balancing Regulations to Promote Jobs from Employment Contracts to Unemployment Benefits

Arvo Kuddo, David A. Robalino and Michael Weber

No 25518330, Jobs Group Papers, Notes, and Guides from The World Bank

Abstract: The report suggests that there are general principles that can guide the design of labor regulations. For instance, in terms of employment contracts, it is important to ensure convergence in the types of benefits and protections that workers receive, regardless of the length of time they spend with a given employer. For minimum wages, it is necessary to keep regulations simple and transparent, and to reduce discretion by having an independent body that periodically assesses the level of the minimum wage and its economic and social impacts. Regarding dismissal procedures, the report recommends giving flexibility to firms in the management of human resources, as long as there is appropriate advance notice, an adequate system of income protection, and efficient mechanisms to detect and sanction discrimination. Finally, for severance pay, the recommendation is to rely more on unemployment benefit systems that reduce employees’ risk of not receiving payments if their employers face liquidity constraints or go out of businesses. The report is organized into four chapters. Chapter one discusses essential elements of the employment contract as well as emerging forms of contractual relationships, with the focus on temporary employment and part-time employment contracts. Chapter two examines the establishment of the minimum wage, including setting the minimum wage, the level and differentiation of minimum wages, coverage, and adjustments in the level. Chapter three presents the main rules and regulations regarding the termination of employment contracts. Chapter four presents a discussion on the design and implementation of income protection schemes in case of unemployment, focusing on severance pay and unemployment benefit schemes.

Keywords: minimum wage; abolition of child labor; changing nature of jobs; low levels of education; employment contract; minimum wage regulation; employment relationship; unemployment benefit; Labor Market; labor market regulation; types of contract; employment injury benefit; social security scheme; contract of employment; access to training; duration employment; freedom of association; place of work; organization of work; management of resources; cost of training; impact on poverty; number of jobs; share of labor; amount of remuneration; adverse employment effect; impact on productivity; social security contribution; trade union right; level of employment; standard of living; labor force participation; emerging market economy; cost of living; Social Safety Nets; individuals with disability; equality of opportunity; unemployment benefit system; incidence of poverty; country case study; social insurance coverage; termination of employment; formal sector worker; risk of poverty; elimination of discrimination; form of tax; social protection system; forms of employment; labor market outcome; labor regulation (search for similar items in EconPapers)
Pages: 54
Date: 2015-01-01
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Citations: View citations in EconPapers (10)

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