Adjusting employment protection legislation to the economic cycle: do transition countries differ from mature democracies?

Michał Pilc , Monika Naskręcka

Abstract

Although the transition period for post-socialist countries began almost thirty years ago, still little is known about the determinants of changes in labour market institutions during that time. This study is focused on one of these institutions, i.e. employment protection legislation and analyses whether it is adapted differently to the economic cycle in countries that offer various levels of political freedom. The proposed theoretical model predicts that in countries where political freedom is unlimited and law violations are rare, after the positive (negative) macroeconomic shock the formal protection of employees will, on average, be increased (decreased), while in countries where there is no political freedom and law violations are frequent, the formal protection of employees will be rather reduced (extended). Although the main empirical analysis conducted for 43 OECD and post-socialist countries for the years 1993–2009 does not fully support the theoretical model, it confirms that the mechanism of shaping the employment protection legislation in democratic, highly-developed and transition countries has been different than in non-democratic post-socialist states.
Author Michał Pilc (WE / KMiBR)
Michał Pilc,,
- KMiBR
, Monika Naskręcka (WIiGE / KEM)
Monika Naskręcka,,
- Department of Mathematical Economics
Journal seriesPost-Communist Economies, ISSN 1463-1377, e-ISSN 1465-3958, (N/A 40 pkt)
Issue year2020
Vol32
No1
Pages24-53
Publication size in sheets1.45
Keywords in Polishprawna ochrona zatrudnienia; instytucje rynku pracy; kraje postsocjalistyczne; kraje transformacji; cykl koniunkturalny
Keywords in Englishemployment protection legislation; labour market institutions; post-socialist countries; transition countries; economic cycle; business cycle
ASJC Classification2002 Economics and Econometrics
DOIDOI:10.1080/14631377.2019.1678093
URL https://www.tandfonline.com/doi/full/10.1080/14631377.2019.1678093
Languageen angielski
Score (nominal)40
Score sourcejournalList
ScoreMinisterial score = 40.0, 26-04-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 0.661; WoS Impact Factor: 2017 = 0.541 (2) - 2017=0.773 (5)
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