Employment Protection and Industrial Relations: Recent Trends and Labour Market Impacts

TitleEmployment Protection and Industrial Relations: Recent Trends and Labour Market Impacts
Publication TypeBook
Year of Publication2012
AuthorsCazes, S., Khatiwada, Sameer, and Malo, Miguel Angel
Series TitleWorld of Work Report 2012: Better Jobs For a Better Economy
Number of Pages35 - 58
PublisherInternational Labour Organization
CityGeneva, Switzerland
Keywordsemployment levels, employment protection, employment protection regulation, labor market reform

[Excerpt] Countries faced with the twin challenges of low employment growth and limited fiscal space have turned increasingly towards labour market reform as a tool for reassuring financial markets and in the hope of boosting economic growth. Indeed, the most recent evidence gathered in this chapter indicates that, in the post-crisis period, reforms that promote lighter employment protection regulations and decentralized collective bargaining have gathered momentum….While there are grounds for modifying inadequate provisions, some of the recent labour market reforms may reduce job stability and exacerbate inequalities while failing to boost employment levels. And, in countries in recession, the weakening of regulations and institutions may leave the labour market with no protection floor or a very low one – thereby hampering overall job recovery prospects. The policy debate should therefore focus on the efficient design of regulations and institutions, rather than on “less regulation versus more regulation”. This chapter provides recent examples of such efficient regulation.