Labor Market Regulations: Job Security versus Labor Flexibility - Economic Research Forum (ERF)

Labor Market Regulations: Job Security versus Labor Flexibility

Jackline Wahba

September, 2016


5 pages

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



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