Policy Briefs
Labor Market Regulations: Job Security versus Labor Flexibility
No.
19
Date
September, 2016
Topic
J1. Demographic Economics
In a nutshell
- Labor laws aim to protect workers and increase labor market efficiency.
- However, over-protective labor regulations may result in higher informality and unemployment, as well as in hurting outsiders (usually women and young workers).
- A balanced approach between flexibility in the labor market and security of workers is needed.
- Reforming social protection schemes and the introduction of unemployment insurance would protect workers rather than jobs and lead to more efficient labor markets.
Research Fellows
Jackline Wahba
Professor of Economics, University of Southampton, UK...