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Employment security and the demand for labour in Europe

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  • Julian Morgan

Abstract

This paper analyses the impact of employment security on labour demand. The approach taken is to estimate a dynamic labour demand function that allows for the effect of changes in a measure of employment security derived from surveys of employers. The estimation uses panel data on employment (both in terms of the total number of employees and total hours worked) for seven European countries for the period 1981-1994. The results suggest that employment security can have significant effects in slowing down the dynamic adjustment of labour demand. The paper also finds some (less robust) evidence that employment security can increase the long run level of labour demand in terms of total hours, but not the number of persons employed.

Suggested Citation

  • Julian Morgan, 2001. "Employment security and the demand for labour in Europe," Applied Economics, Taylor & Francis Journals, vol. 33(14), pages 1763-1774.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1763-1774
    DOI: 10.1080/00036840010017659
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    References listed on IDEAS

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    1. Simon Burgess, 1994. "The Reallocation of Employment and the Role of Employment Protection Legislation," CEP Discussion Papers dp0193, Centre for Economic Performance, LSE.
    2. Booth, Alison L, 1996. "Firing Costs, Unions and Employment," CEPR Discussion Papers 1347, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Yu‐Fu Chen & Dennis Snower & Gylfi Zoega, 2003. "Labour‐market Institutions and Macroeconomic Shocks," LABOUR, CEIS, vol. 17(2), pages 247-270, June.
    2. Selçuk GÜL, 2013. "Institutional Rigidities and Their Effects on Labor Demand in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 20(20).
    3. Gilles Mourre, 2006. "Did the pattern of aggregate employment growth change in the euro area in the late 1990s?," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1783-1807.
    4. Julian Morgan & Annabelle Mourougane, 2005. "What Can Changes In Structural Factors Tell Us About Unemployment In Europe?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 75-104, February.
    5. Benoît Pierre FREYENS, 2010. "Measuring firing costs: The case for direct methods," International Labour Review, International Labour Organization, vol. 149(3), pages 287-313, September.
    6. Pierluigi, Beatrice & Roma, Moreno, 2008. "Labour cost and employment across euro area countries and sectors," Working Paper Series 912, European Central Bank.

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