Talk:Employment protection legislation

Dr. Siebert's comment on this article
Dr. Siebert has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

"I have a few additions in CAPS, to the Unemployment section: "These two effects would neutralize each other, explaining why overall, EPL has no effect on AGGREGATE unemployment." HOWEVER, UNEMPLOYMENT OF UNSKILLED GROUPS ("OUTSIDERS") SHOULD INCREASE - FOR EXAMPLE BERTOLA ET AL (2007) FIND OLDER WORKERS EMPLOYMENT IS NEGATIVELY AFFECTED BY EPL Bertola, G., F. Blau and L. Kahn (2007). “Labor market Institutions and Demographic Employment Patterns”, Journal of Population Economics, 20: 833-867.

I also have a few additions in CAPS, to the Wages section: "As stated by Lazear (1990),[11] in a perfect labor market, severance payments can have no real effects as they can be undone by a properly designed labor contract". IN OTHER WORDS, BECAUSE WORKERS LIKE THE EXTRA EPL, THEY WILL BE PREPARED TO WORK FOR LESS, AND WAGES SHOULD FALL. "Leonardi and Pica (2006)... In fact, in their study they find that 25 percent of the firing cost was shifted onto lower wages in the case of Italy.[12]" ON THE OTHER HAND, VAN DER WIEL (2010) FINDS INCREASED WAGES AFTER AN INCREASE IN EPL CAUSED BY LONGER NOTICE TERMS INTRODUCED BY A NEW DUTCH LAW IN 1999. THIS EFFECT IS PRESUMABLY BECAUSE THE MORE PROTECTED WORKERS USE THEIR HIGHER BARGAINING POWER TO NEGOTIATE HIGHER WAGES. LESS PROTECTED WORKERS SHOULD EXPERIENCE EVEN MORE OF A WAGE FALL IN THESE CIRCUMSTANCES, BUT REMEMBER THAT SUCH A FALL IS HARD TO MEASURE BECAUSE MINIMUM WAGES AND WELFARE BENEFITS PREVENT UNSKILLED WORKERS' WAGES FALLING. Van der Wiel, K. (2010). “Better Protected, Better Paid: Evidence On How Employment Protection Affects Wages”, Labour Economics, 17: 16-26."

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 * Reference : Anagnostopoulos, Achilleas & Siebert, W. Stanley, 2012. "The Impact of Greek Labour Market Regulation on Temporary and Family Employment: Evidence from a New Survey," IZA Discussion Papers 6504, Institute for the Study of Labor (IZA).

ExpertIdeasBot (talk) 14:40, 30 May 2016 (UTC)