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Employment Protection Legislation: Its Economic Impact and the Case for Reform
Date: 21-7-2003
By David Young
Despite the large volume of economic literature on employment protection legislation (EPL), there remain remarkable disagreements among economists and policy-makers on the subject. Many highlight the risks associated with stringent EPL, both for labour market performance and for productivity growth. Others think that worrying about EPL is largely a waste of time, since the impact is ambiguous according to economic theory and rarely of high significance in cross-country empirical studies.
This paper reviews some of the recent theory and empirical evidence.
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