Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them?
Pierre and Scarpetta present evidence on how employers perceive labor regulations and react when these are perceived to constrain the operation of their firm. They draw from harmonized surveys of (up to) 17,000 firms around the world and compare employers' responses with actual labor legislatio...
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| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://hdl.handle.net/10986/9092 |
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okr-10986-90922021-04-23T14:02:44Z Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? Pierre, Gaëlle Scarpetta, Stefano Pierre and Scarpetta present evidence on how employers perceive labor regulations and react when these are perceived to constrain the operation of their firm. They draw from harmonized surveys of (up to) 17,000 firms around the world and compare employers' responses with actual labor legislation. The authors find that employers' concerns about labor regulations are closely matched by the relative stringency of de jure labor laws. Countries that have, from an international perspective, tight labor regulations tend to have higher proportions of employers reporting these regulations as severe constraints. But not all firms are affected in the same way by onerous labor regulations. Medium sized firms are those whose business and prospects for growth are most negatively affected. Similarly, innovating firms are disproportionally affected by tight labor regulations. There is also clear evidence in the data that firms facing tight regulations invest more in training and make greater use of temporary employment. Small firms mainly rely on temporary employment, while medium and large firms, as well as innovating firms, tend to rely more on on-the-job training if labor regulations make hiring and firing very costly. This paper, a product of the Division, Human Development Network, is part of a larger effort in the network to understand the effect of employment regulations on firm's performance. 2012-06-26T15:37:57Z 2012-06-26T15:37:57Z 2004 http://hdl.handle.net/10986/9092 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Africa Europe and Central Asia Latin America & Caribbean |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| geographic_facet |
Africa Europe and Central Asia Latin America & Caribbean |
| description |
Pierre and Scarpetta present evidence on how employers perceive labor regulations and react when these are perceived to constrain the operation of their firm. They draw from harmonized surveys of (up to) 17,000 firms around the world and compare employers' responses with actual labor legislation. The authors find that employers' concerns about labor regulations are closely matched by the relative stringency of de jure labor laws. Countries that have, from an international perspective, tight labor regulations tend to have higher proportions of employers reporting these regulations as severe constraints. But not all firms are affected in the same way by onerous labor regulations. Medium sized firms are those whose business and prospects for growth are most negatively affected. Similarly, innovating firms are disproportionally affected by tight labor regulations. There is also clear evidence in the data that firms facing tight regulations invest more in training and make greater use of temporary employment. Small firms mainly rely on temporary employment, while medium and large firms, as well as innovating firms, tend to rely more on on-the-job training if labor regulations make hiring and firing very costly. This paper, a product of the Division, Human Development Network, is part of a larger effort in the network to understand the effect of employment regulations on firm's performance. |
| author |
Pierre, Gaëlle Scarpetta, Stefano |
| spellingShingle |
Pierre, Gaëlle Scarpetta, Stefano Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? |
| author_facet |
Pierre, Gaëlle Scarpetta, Stefano |
| author_sort |
Pierre, Gaëlle |
| title |
Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? |
| title_short |
Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? |
| title_full |
Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? |
| title_fullStr |
Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? |
| title_full_unstemmed |
Employment Regulations through the Eyes of Employers : Do They Matter and How Do Firms Respond to Them? |
| title_sort |
employment regulations through the eyes of employers : do they matter and how do firms respond to them? |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/9092 |
| _version_ |
1764408436082081792 |