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15/07/2003

Employment protection legislation: its economic impact and the case for reform

ECFIN/270/03-EN


European Economy. Economic Papers - n. 186/July 2003 ISSN 1725-3187

This paper reviews some of the recent theory and empirical evidence on employment protection legislation (EPL). The clearest result is that EPL indeed has real effects on labour market dynamics, as it is designed to do. It discourages firing and hiring, lengthens average job tenure, reduces frictional unemployment and increases long-term unemployment 

author(s): European Commission - DG for Economics and Financial Affairs, D. Young
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