Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia

In response to prolonged recession, in April 2010 the Croatian Government adopted an Economic Recovery Program to safeguard macroeconomic stability and support faster recovery of the private sector. A central element of the program is revision of l...

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Main Author: World Bank
Format: Policy Note
Language:English
en_US
Published: Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2011/07/16406294/employment-protection-legislation-labor-market-outcomes-theory-evidence-lessons-croatia
http://hdl.handle.net/10986/12902
id okr-10986-12902
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACTIVE LABOR
ACTIVE LABOR MARKET
ACTIVE LABOR MARKET POLICIES
AGGREGATE EMPLOYMENT
AGGREGATE UNEMPLOYMENT
ANNUAL LEAVE
AVERAGE WAGE
BARGAINING POWER
BUSINESS CYCLE
COLLECTIVE AGREEMENT
COLLECTIVE AGREEMENTS
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING AGREEMENTS
COLLECTIVE DISMISSAL
COLLECTIVE DISMISSALS
COMPENSATION PACKAGE
COMPETITIVENESS
CONDITIONS OF EMPLOYMENT
CONTINGENT WORKERS
DISADVANTAGED GROUPS
DISADVANTAGED WORKER
DISADVANTAGED WORKERS
DISCUSSIONS
DISMISSAL
DISMISSED WORKER
DISMISSED WORKERS
ECONOMIC CONDITIONS
ECONOMIC EFFECTS
ECONOMIC GROWTH
ECONOMIC RECOVERY
ECONOMIC THEORY
EFFICIENCY WAGES
EMERGING MARKET
EMPLOYEE
EMPLOYERS
EMPLOYMENT
EMPLOYMENT CONTRACTS
EMPLOYMENT DYNAMICS
EMPLOYMENT GROWTH
EMPLOYMENT LEVEL
EMPLOYMENT OFFICES
EMPLOYMENT OUTCOMES
EMPLOYMENT OUTLOOK
EMPLOYMENT PROSPECTS
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT RATE
EMPLOYMENT RATES
EMPLOYMENT STABILITY
FEMALE EMPLOYMENT
FIRING
FIRING COSTS
FIRM ENTRY
FIRM LEVEL
HIRING
INDEXATION
INDUSTRIAL RELATIONS
INEXPERIENCED WORKERS
INFLATION
INFLEXIBLE LABOR
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INNOVATION
JOB CREATION
JOB DESTRUCTION
JOB LOSSES
JOB OPENINGS
JOB SEARCH
JOB SECURITY
JOB SEEKERS
JOBS
LABOR COSTS
LABOR DEMAND
LABOR ECONOMICS
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR LAW
LABOR LAWS
LABOR LEGISLATION
LABOR MARKET
LABOR MARKET FLEXIBILITY
LABOR MARKET INDICATORS
LABOR MARKET INSTITUTIONS
LABOR MARKET OUTCOMES
LABOR MARKET PERFORMANCE
LABOR MARKET POLICIES
LABOR MARKET REFORMS
LABOR MARKET REGULATIONS
LABOR MARKET RIGIDITIES
LABOR MARKET RIGIDITY
LABOR MARKET SEGMENTATION
LABOR MARKET SITUATION
LABOR MARKETS
LABOR PRODUCTIVITY
LABOR PRODUCTIVITY GROWTH
LABOR REGULATIONS
LABOR RELATIONS
LABOR RESOURCES
LABOUR
LABOUR MARKET
LABOUR MARKET OUTCOMES
LABOUR MARKET POLICIES
LABOUR MARKET REFORMS
LONG TERM UNEMPLOYMENT
LONG-TERM UNEMPLOYMENT
LONGTERM UNEMPLOYMENT
MANDATORY SEVERANCE
MANDATORY SEVERANCE PAY
MARKET VOLATILITY
MASS LAYOFFS
MINIMUM WAGE
OLDER WORKERS
ON-THE-JOB TRAINING
PAYROLL TAXES
PERMANENT EMPLOYMENT
PRIVATE SECTOR
PRODUCTIVE FIRMS
PRODUCTIVITY GROWTH
PROTECTING WORKERS
PUBLIC SECTOR WORKERS
REAL WAGES
RECOMMENDATIONS
REDUNDANCY
REDUNDANT WORKERS
REGULAR CONTRACTS
REGULAR JOBS
REGULAR WORKERS
RIGID LABOR MARKET
RIGID WAGES
SEASONAL FLUCTUATIONS
SEVERANCE PAYMENTS
SICK LEAVE
SKILLED WORKERS
SOCIAL PROTECTION
SOCIAL SECURITY
STAFF
SUBSTITUTE
TEMPORARY EMPLOYMENT
TEMPORARY WORK
TEMPORARY WORKERS
TOTAL FACTOR PRODUCTIVITY
TRADE UNIONS
TRIPARTITE
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT INSURANCE
UNEMPLOYMENT INSURANCE FUND
UNEMPLOYMENT RATE
UNEMPLOYMENT SPELLS
UNINTENDED EFFECTS
UNION ACTIVITY
UNION DENSITY
UNION MEMBERSHIP
WAGE BARGAINING
WAGE BARGAINING SYSTEM
WAGE BILL
WAGE DETERMINATION
WAGE GROWTH
WAGE RIGIDITIES
WAGE STRUCTURE
WORKER RIGHTS
WORKING CONDITIONS
WORKING HOURS
YOUNG WORKERS
YOUTH EMPLOYMENT
YOUTH UNEMPLOYMENT
spellingShingle ACTIVE LABOR
ACTIVE LABOR MARKET
ACTIVE LABOR MARKET POLICIES
AGGREGATE EMPLOYMENT
AGGREGATE UNEMPLOYMENT
ANNUAL LEAVE
AVERAGE WAGE
BARGAINING POWER
BUSINESS CYCLE
COLLECTIVE AGREEMENT
COLLECTIVE AGREEMENTS
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING AGREEMENTS
COLLECTIVE DISMISSAL
COLLECTIVE DISMISSALS
COMPENSATION PACKAGE
COMPETITIVENESS
CONDITIONS OF EMPLOYMENT
CONTINGENT WORKERS
DISADVANTAGED GROUPS
DISADVANTAGED WORKER
DISADVANTAGED WORKERS
DISCUSSIONS
DISMISSAL
DISMISSED WORKER
DISMISSED WORKERS
ECONOMIC CONDITIONS
ECONOMIC EFFECTS
ECONOMIC GROWTH
ECONOMIC RECOVERY
ECONOMIC THEORY
EFFICIENCY WAGES
EMERGING MARKET
EMPLOYEE
EMPLOYERS
EMPLOYMENT
EMPLOYMENT CONTRACTS
EMPLOYMENT DYNAMICS
EMPLOYMENT GROWTH
EMPLOYMENT LEVEL
EMPLOYMENT OFFICES
EMPLOYMENT OUTCOMES
EMPLOYMENT OUTLOOK
EMPLOYMENT PROSPECTS
EMPLOYMENT PROTECTION LEGISLATION
EMPLOYMENT RATE
EMPLOYMENT RATES
EMPLOYMENT STABILITY
FEMALE EMPLOYMENT
FIRING
FIRING COSTS
FIRM ENTRY
FIRM LEVEL
HIRING
INDEXATION
INDUSTRIAL RELATIONS
INEXPERIENCED WORKERS
INFLATION
INFLEXIBLE LABOR
INFORMAL EMPLOYMENT
INFORMAL SECTOR
INNOVATION
JOB CREATION
JOB DESTRUCTION
JOB LOSSES
JOB OPENINGS
JOB SEARCH
JOB SECURITY
JOB SEEKERS
JOBS
LABOR COSTS
LABOR DEMAND
LABOR ECONOMICS
LABOR FORCE
LABOR FORCE PARTICIPATION
LABOR LAW
LABOR LAWS
LABOR LEGISLATION
LABOR MARKET
LABOR MARKET FLEXIBILITY
LABOR MARKET INDICATORS
LABOR MARKET INSTITUTIONS
LABOR MARKET OUTCOMES
LABOR MARKET PERFORMANCE
LABOR MARKET POLICIES
LABOR MARKET REFORMS
LABOR MARKET REGULATIONS
LABOR MARKET RIGIDITIES
LABOR MARKET RIGIDITY
LABOR MARKET SEGMENTATION
LABOR MARKET SITUATION
LABOR MARKETS
LABOR PRODUCTIVITY
LABOR PRODUCTIVITY GROWTH
LABOR REGULATIONS
LABOR RELATIONS
LABOR RESOURCES
LABOUR
LABOUR MARKET
LABOUR MARKET OUTCOMES
LABOUR MARKET POLICIES
LABOUR MARKET REFORMS
LONG TERM UNEMPLOYMENT
LONG-TERM UNEMPLOYMENT
LONGTERM UNEMPLOYMENT
MANDATORY SEVERANCE
MANDATORY SEVERANCE PAY
MARKET VOLATILITY
MASS LAYOFFS
MINIMUM WAGE
OLDER WORKERS
ON-THE-JOB TRAINING
PAYROLL TAXES
PERMANENT EMPLOYMENT
PRIVATE SECTOR
PRODUCTIVE FIRMS
PRODUCTIVITY GROWTH
PROTECTING WORKERS
PUBLIC SECTOR WORKERS
REAL WAGES
RECOMMENDATIONS
REDUNDANCY
REDUNDANT WORKERS
REGULAR CONTRACTS
REGULAR JOBS
REGULAR WORKERS
RIGID LABOR MARKET
RIGID WAGES
SEASONAL FLUCTUATIONS
SEVERANCE PAYMENTS
SICK LEAVE
SKILLED WORKERS
SOCIAL PROTECTION
SOCIAL SECURITY
STAFF
SUBSTITUTE
TEMPORARY EMPLOYMENT
TEMPORARY WORK
TEMPORARY WORKERS
TOTAL FACTOR PRODUCTIVITY
TRADE UNIONS
TRIPARTITE
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT INSURANCE
UNEMPLOYMENT INSURANCE FUND
UNEMPLOYMENT RATE
UNEMPLOYMENT SPELLS
UNINTENDED EFFECTS
UNION ACTIVITY
UNION DENSITY
UNION MEMBERSHIP
WAGE BARGAINING
WAGE BARGAINING SYSTEM
WAGE BILL
WAGE DETERMINATION
WAGE GROWTH
WAGE RIGIDITIES
WAGE STRUCTURE
WORKER RIGHTS
WORKING CONDITIONS
WORKING HOURS
YOUNG WORKERS
YOUTH EMPLOYMENT
YOUTH UNEMPLOYMENT
World Bank
Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia
geographic_facet Europe and Central Asia
Croatia
description In response to prolonged recession, in April 2010 the Croatian Government adopted an Economic Recovery Program to safeguard macroeconomic stability and support faster recovery of the private sector. A central element of the program is revision of labor regulations to create a more dynamic labor market by ensuring labor force flexibility and job security. The goal is to increase the labor force participation rate and ensure that it has the skills and competencies required by the evolving and dynamic private sector. The Croatian Ministries of Finance and labor asked the World Bank for support in design of possible labor legislation reform. The objective of this note is to benchmark Croatia's legislation and help identify legal constraints on achieving a more dynamic and flexible labor market. Changes to employment protection legislation (EPL) can be politically difficult. They therefore need to be preceded by a public information campaign explaining their rationale and by dialogue with social partners. The central message to be conveyed to the public is that relaxing the most rigid provisions of the labor law will eventually lead to better employment prospects, shorter spells of unemployment, less informality, and higher productivity and ultimately incomes. This involves moving from protecting jobs to protecting workers an idea known as flexicurity.
format Economic & Sector Work :: Policy Note
author World Bank
author_facet World Bank
author_sort World Bank
title Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia
title_short Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia
title_full Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia
title_fullStr Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia
title_full_unstemmed Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia
title_sort employment protection legislation and labor market outcomes : theory, evidence and lessons for croatia
publisher Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2011/07/16406294/employment-protection-legislation-labor-market-outcomes-theory-evidence-lessons-croatia
http://hdl.handle.net/10986/12902
_version_ 1764421003078795264
spelling okr-10986-129022021-04-23T14:03:03Z Employment Protection Legislation and Labor Market Outcomes : Theory, Evidence and Lessons for Croatia World Bank ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET POLICIES AGGREGATE EMPLOYMENT AGGREGATE UNEMPLOYMENT ANNUAL LEAVE AVERAGE WAGE BARGAINING POWER BUSINESS CYCLE COLLECTIVE AGREEMENT COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COLLECTIVE BARGAINING AGREEMENTS COLLECTIVE DISMISSAL COLLECTIVE DISMISSALS COMPENSATION PACKAGE COMPETITIVENESS CONDITIONS OF EMPLOYMENT CONTINGENT WORKERS DISADVANTAGED GROUPS DISADVANTAGED WORKER DISADVANTAGED WORKERS DISCUSSIONS DISMISSAL DISMISSED WORKER DISMISSED WORKERS ECONOMIC CONDITIONS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC RECOVERY ECONOMIC THEORY EFFICIENCY WAGES EMERGING MARKET EMPLOYEE EMPLOYERS EMPLOYMENT EMPLOYMENT CONTRACTS EMPLOYMENT DYNAMICS EMPLOYMENT GROWTH EMPLOYMENT LEVEL EMPLOYMENT OFFICES EMPLOYMENT OUTCOMES EMPLOYMENT OUTLOOK EMPLOYMENT PROSPECTS EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT STABILITY FEMALE EMPLOYMENT FIRING FIRING COSTS FIRM ENTRY FIRM LEVEL HIRING INDEXATION INDUSTRIAL RELATIONS INEXPERIENCED WORKERS INFLATION INFLEXIBLE LABOR INFORMAL EMPLOYMENT INFORMAL SECTOR INNOVATION JOB CREATION JOB DESTRUCTION JOB LOSSES JOB OPENINGS JOB SEARCH JOB SECURITY JOB SEEKERS JOBS LABOR COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR FORCE PARTICIPATION LABOR LAW LABOR LAWS LABOR LEGISLATION LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INDICATORS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET PERFORMANCE LABOR MARKET POLICIES LABOR MARKET REFORMS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITIES LABOR MARKET RIGIDITY LABOR MARKET SEGMENTATION LABOR MARKET SITUATION LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATIONS LABOR RELATIONS LABOR RESOURCES LABOUR LABOUR MARKET LABOUR MARKET OUTCOMES LABOUR MARKET POLICIES LABOUR MARKET REFORMS LONG TERM UNEMPLOYMENT LONG-TERM UNEMPLOYMENT LONGTERM UNEMPLOYMENT MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MARKET VOLATILITY MASS LAYOFFS MINIMUM WAGE OLDER WORKERS ON-THE-JOB TRAINING PAYROLL TAXES PERMANENT EMPLOYMENT PRIVATE SECTOR PRODUCTIVE FIRMS PRODUCTIVITY GROWTH PROTECTING WORKERS PUBLIC SECTOR WORKERS REAL WAGES RECOMMENDATIONS REDUNDANCY REDUNDANT WORKERS REGULAR CONTRACTS REGULAR JOBS REGULAR WORKERS RIGID LABOR MARKET RIGID WAGES SEASONAL FLUCTUATIONS SEVERANCE PAYMENTS SICK LEAVE SKILLED WORKERS SOCIAL PROTECTION SOCIAL SECURITY STAFF SUBSTITUTE TEMPORARY EMPLOYMENT TEMPORARY WORK TEMPORARY WORKERS TOTAL FACTOR PRODUCTIVITY TRADE UNIONS TRIPARTITE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE FUND UNEMPLOYMENT RATE UNEMPLOYMENT SPELLS UNINTENDED EFFECTS UNION ACTIVITY UNION DENSITY UNION MEMBERSHIP WAGE BARGAINING WAGE BARGAINING SYSTEM WAGE BILL WAGE DETERMINATION WAGE GROWTH WAGE RIGIDITIES WAGE STRUCTURE WORKER RIGHTS WORKING CONDITIONS WORKING HOURS YOUNG WORKERS YOUTH EMPLOYMENT YOUTH UNEMPLOYMENT In response to prolonged recession, in April 2010 the Croatian Government adopted an Economic Recovery Program to safeguard macroeconomic stability and support faster recovery of the private sector. A central element of the program is revision of labor regulations to create a more dynamic labor market by ensuring labor force flexibility and job security. The goal is to increase the labor force participation rate and ensure that it has the skills and competencies required by the evolving and dynamic private sector. The Croatian Ministries of Finance and labor asked the World Bank for support in design of possible labor legislation reform. The objective of this note is to benchmark Croatia's legislation and help identify legal constraints on achieving a more dynamic and flexible labor market. Changes to employment protection legislation (EPL) can be politically difficult. They therefore need to be preceded by a public information campaign explaining their rationale and by dialogue with social partners. The central message to be conveyed to the public is that relaxing the most rigid provisions of the labor law will eventually lead to better employment prospects, shorter spells of unemployment, less informality, and higher productivity and ultimately incomes. This involves moving from protecting jobs to protecting workers an idea known as flexicurity. 2013-03-25T17:04:16Z 2013-03-25T17:04:16Z 2011-07 http://documents.worldbank.org/curated/en/2011/07/16406294/employment-protection-legislation-labor-market-outcomes-theory-evidence-lessons-croatia http://hdl.handle.net/10986/12902 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Europe and Central Asia Croatia