Hartwell, Christopher A (2010): Employment Protection Legislation and Labor Markets in Transition: Assessing the Effects of the Labor Code in Armenia. Published in: European Journal of Comparative Economics , Vol. 7, No. 2 (December 2010): pp. 413-445.
Download (469kB) | Preview
The effects of employment protection legislation (EPL) on a country’s labor market are clear in theory but empirical evidence is only starting to catch up. In particular, EPL is not robust as an indicator of overall unemployment, but previous panel data analyses have shown it affects the flow of workers into and out of employment. Examining monthly and quarterly data from Armenia, I find that the country’s package of EPL has this same effect, and worker flows have slowed under the country’s new Labor Code. The paradox of where Armenia’s workforce is going still remains but can be hypothesized as entering the informal sector.
|Item Type:||MPRA Paper|
|Original Title:||Employment Protection Legislation and Labor Markets in Transition: Assessing the Effects of the Labor Code in Armenia|
|Keywords:||employment protection legislation; institutions; Armenia; transition|
|Subjects:||J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure
|Depositing User:||Christopher Hartwell|
|Date Deposited:||25. Jul 2012 08:42|
|Last Modified:||13. Feb 2013 16:41|
Abraham, K., Houseman S. (1994), “Does Employment Protection Inhibit Labor Market Flexibility? Lessons From Germany, France and Belgium,” in R. M. Blank (ed.), Social Protection vs. Economic Flexibility: Is There a Tradeoff? University of Chicago Press, Chicago.
Addison J.T, Teixeira P. (2001), “The Economics of Employment Protection,” IZA Discussion Papers 381, Institute for the Study of Labor (IZA), October, at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.121.4908&rep=rep1&type=pdf.
Barsky R.B., Miron J.A. (1989), “The Seasonal Cycle and the Business Cycle”, Journal of Political Economy, 97, 503-534.
Bassanini A., Booth A., Brunello G., De Paola M., and Leuven E. (2005), "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA), June, at: ftp://repec.iza.org/RePEc/Discussionpaper/dp1640.pdf.
Bassanini A., Duval R. (2006), "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions", OECD Economics Department Working Papers, No. 486.
Blanchard O., Katz L. (1999), “Wage Dynamics: Reconciling Theory and Evidence,” American Economic Review, 89, 69-74.
Blanchard O., Portugal P. (2001), “What Hides Behind an Unemployment Rate: Comparing Portuguese and US Unemployment,” American Economic Review, 91, 187-207.
Botero J., Djankov S., La Porta R., Lopez-de-Silanes F., Shleifer A. (2003), “The Regulation of Labor,” National Bureau of Economic Research Working Paper No. 9756.
Cazes S., Nesporova A. (2003), Labour Markets in Transition: Balancing Flexibility & Security in Central and Eastern Europe, ILO, Geneva.
Clarke K.A. (2005), “The Phantom Menace: Omitted Variable Bias in Econometric Research,” Conflict Management and Peace Science, 22, 341–352.
Elmeskov J., Martin J., Scarpetta S. (1998), “Key Lessons for Labour Market Reforms: Evidence from OECD Countries’ Experiences,” Swedish Economic Policy Review 5, 205-252.
European Training Foundation (ETF), 2010, “Black Sea Labour Market Reviews: Armenia Country Report,” January, at: http://www.etf.europa.eu/pubmgmt.nsf/(getAttachment)/73E1980696EE2434C12576EF005BD31F/$File/NOTE83TMLS.pdf.
Freeman R.B. (2005), “Labor Market Institutions without Blinders: The Debate over Flexibility and Labour Market Performance,” National Bureau of Economic Research Working Paper No. 11286.
Gwartney J., Lawson R., Grubel H., de Haan J., Sturm J-E., Zandberg E. (2009), Economic Freedom of the World: 2009 Annual Report, Vancouver, BC, The Fraser Institute. Haltiwanger J., Scarpetta S., Vodopivec M. (2003), “How Institutions Affect Labor Market Outcomes: Evidence from Transition Economies,” Paper presented at the 2003 World Bank Economists’ Forum, Washington, D.C., April 10.
Heckman J., Pages C. (2000), “The Cost of Job Security Regulations: Evidence from Latin American Labour Markets,” National Bureau of Economic Research Working Paper No. 7773.
Hoek J. (2002), “Labor Market Institutions and Restructuring: Evidence from Regulated and Unregulated Labor Markets in Brazil,” William Davidson Institute, University of Michigan, Working Paper No. 484.
Khomenko T. (2007), “Measurement of the Non-Observed Economy in Transition Economies with Special Reference to the CIS Countries,” Paper presented at the International Association for Research in Income and Wealth (IARIW) conference, “Experiences and Challenges in Measuring National Income and Wealth in Transition Economies,” Beijing, China, September 18-21.
Koranchelian T., Fanizza D. (2005), “How Does Employment Protection Legislation Affect Unemployment in Tunisia? A Search Equilibrium Approach,” International Monetary Fund Working Paper No. 05/92.
Kuddo A. (2009), “Labor Laws in Eastern European and Central Asian Countries: Minimum Norms and Practices,” World Bank Human Development Network Social Protection & Labor Team Discussion Paper SP0920 (November).
Kugler A., Pica G. (2007), “Effects of Employment Protection on Worker and Job Flows: Evidence from the 1990 Italian Reform,” Labour Economics, 15, 78-95.
Lazear, E. P. (1990), “Job Security Provisions and Employment,” Quarterly Journal of Economics 105, 699-726.
Leonardi M., Pica G. (2007), “Employment Protection Legislation and Wages,” Institute for the Study of Labor (IZA) Discussion Paper No. 2680, March.
Micco A., Pages C. (2007), “The Economic Effects of Employment Protection: Evidence from International Industry-level Data,” Inter-American Development Bank Research Department Working Paper No. 592.
Neumark D., Wascher W. (2006), “Minimum Wages and Employment: A Review of Evidence From The New Minimum Wage Research,” National Bureau of Economic Research Working Paper No. 12663.
Nicoletti G., Scarpetta S. (2005), “Product Market Reforms and Employment in OECD Countries,” OECD Economics Department Working Paper, No. 472, December.
North D.C. (1997), “The Contribution of the New Institutional Economics to an Understanding of the Transition Problem,” UNU WIDER Annual Lecture No. 1, March.
Organization for Economic Cooperation and Development (1999), “Employment Protection and Labour Market Performance,” in Employment Outlook, OECD, Paris.
2004, “Employment Protection Regulation and Labour Market Performance,” in Employment Outlook, OECD, Paris.
Roberts B., Banaian K. (2005), “Remittances in Armenia: Size, Impacts, and Measures to Enhance Their Contribution to Development,” presented at the Third Annual International Conference on Armenia, January 15-16, Washington DC.
Tu J. (2010), “The Impact of Immigration on the Labour Market Outcomes of Native-Born Canadians,” IZA Discussion Papers 5129, Institute for the Study of Labor (IZA), August.
VGM Partners (2008), “The State of Labor Legislation and Institutions in Armenia: Results of a Survey among Experts and Companies,” Produced for the USAID Social Protection Strengthening Systems (SPSS) Project, Armenia.
Wolfers J. (2005), “Measuring the Effects of Employment Protection on Job Flows: Evidence from Seasonal Cycles,” Wharton School at the University of Pennsylvania Working Paper, at http://bpp.wharton.upenn.edu/jwolfers/Papers/EmploymentProtection.pdf.
World Bank (2004), “Implementation Completion Report on a Credit (No. 37370-AM) in the Amount Of US$40 Million to the Republic Of Armenia for a Fifth Structural Adjustment Credit,” Completion Report No. 30460 (December), at: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/01/03/000012009_20050103134547/Rendered/PDF/30460.pdf.
(2005), “Business Environment and Enterprise Performance Survey (BEEPS) At a Glance,” at: http://siteresources.worldbank.org/INTECAREGTOPANTCOR/Resources/BAAGREV20060208Armenia.pdf
(2007a), “Armenia: Labor Market Dynamics, Volume II,” Human Development Sector Unit, Europe and Central Asia Region Report No. 35361-AM.
(2007b), Fiscal Policy and Economic Growth: Lessons for Eastern Europe and Central Asia, World Bank, Washington DC.