Employment regulation and productivity: is there a case for deregulation?

Brookes, Michael, James, Philip and Rizov, Marian (2018) Employment regulation and productivity: is there a case for deregulation? Economic and Industrial Democracy, 39 (3). pp. 381-403. ISSN 0143-831X

EID revised submission 111215.pdf
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Item Type:Article
Item Status:Live Archive


This paper explores empirically the economic validity of the relatively limited approach to the regulation of employment protection pursued in the UK over the last three decades and within the European Union more recently. It does so by comparing the UK’s manufacturing labour productivity performance with those of three countries – France, Germany and Sweden – that possess more stringent employment protection laws. The findings reveal that while productivity growth in the UK was superior to France and Sweden, it was lower than in Germany. More generally, the study’s findings fail to support the existence of a straightforward negative relationship between regulatory stringency and productivity growth.

Keywords:Employment protection, labour productivity, legal regulation, United Kingdom, France, Germany, Sweden
Subjects:L Social studies > L140 Econometrics
L Social studies > L110 Applied Economics
L Social studies > L113 Economic Policy
N Business and Administrative studies > N611 Industrial Relations
M Law > M222 Contract Law
Divisions:Lincoln International Business School
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ID Code:22249
Deposited On:14 Feb 2016 13:12

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