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Employment protection legislation in transition and emerging markets

Author

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  • Alexander Muravyev

    (St Petersburg State University, Russian Federation, and IZA, Germany)

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.

Suggested Citation

  • Alexander Muravyev, 2014. "Employment protection legislation in transition and emerging markets," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-63, September.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:63
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    employment protection; unemployment; informality; transition and emerging economies;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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