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Unemployment and Labour Market Rigidities in Southeast Europe

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  • Maja Micevska

Abstract

This paper presents new data that describe employment protection legislation (EPL) and other labor market institutions and policies preva iling in seven Southeast European (SEE) countries in the late 1990s and the early 2000s. The main contribution has been the construction of EPL indices for the SEE countries. The paper finds that, despite significant liberalization efforts, the SEE countries still stand out for having relatively strict EPL. However, this rigidity mainly stems from their strict legislation on temporary employment and collective dismissals, while the SEE legislation on regular employment is quite flexible. Preliminary empirical results indicate that stricter temporary employment legislation is associated with higher unemployment for women and youths as well as with lower employment and labor force participation rates.

Suggested Citation

  • Maja Micevska, 2004. "Unemployment and Labour Market Rigidities in Southeast Europe," wiiw Balkan Observatory Working Papers 49, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:049
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    Cited by:

    1. Muravyev, Alexander, 2010. "Evolution of Employment Protection Legislation in the USSR, CIS and Baltic States, 1985-2009," IZA Discussion Papers 5365, Institute of Labor Economics (IZA).
    2. Valerija Botric, 2011. "Structural Unemployment And Its Determinants In Southeast Europe," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 20(1), pages 81-100, june.

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