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Employment protection, employment and unemployment rates in European Union countries during the Great Recession

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  • Jesus Ferreiro
  • Carmen Gomez

Abstract

This paper analyses the impact of employment protection legislation on the evolution of employment and unemployment in European Union economies during the Great Recession. The results show that employment protection did not have a significant impact on employment growth. Regarding unemployment rates, we obtain contrasting results: high employment protection for temporary workers was associated with larger increases in unemployment rates, whereas high protection for permanent workers against individual dismissal was associated with lower increases in unemployment rates. Nonetheless, employment protection for permanent in conjunction with that for temporary workers had a positive impact on unemployment rates.

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  • Jesus Ferreiro & Carmen Gomez, 2022. "Employment protection, employment and unemployment rates in European Union countries during the Great Recession," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 25(3), pages 240-258, July.
    • Handle: RePEc:taf:jpolrf:v:25:y:2022:i:3:p:240-258
    DOI: 10.1080/17487870.2020.1855175
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    Cited by:

    1. Palmeira, Rafael & Pindado, Julio & Requejo, Ignacio, 2023. "How does employment protection legislation affect labor investment inefficiencies?," Research in International Business and Finance, Elsevier, vol. 66(C).
    2. Arestis, Philip & Ferreiro, Jesus & Gomez, Carmen, 2023. "Does employment protection legislation affect employment and unemployment?11We acknowledge the comments of an editor and an associate editor of the journal and three reviewers. Their suggestions and r," Economic Modelling, Elsevier, vol. 126(C).

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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