Reassessing the effects of employment protection legislation based on an equilibrium search model

2014 Fiscal Year Final Research Report

• Project/Area Number: 25780194
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Public finance/Public economy
• Research Institution: Soka University
• Principal Investigator: MASUI Makoto 創価大学, 経済学部, 准教授 (50409778)
• Project Period (FY): 2013-04-01 – 2015-03-31
• Keywords: 解雇規制 / 雇用創出 / 失業率 / 労働生産性

Outline of Final Research Achievements

In this research subject, I examined how changes in firing restrictions affect labor markets based on the following viewpoints: (i) collective wage bargaining, (ii) heterogeneity in job matches, (iii) work incentives. Particularly, I focused on the impact of changes in firing restrictions on firms’ hiring thresholds, the average labor productivity and work incentives of employees in a regular contract as well as on creation of new jobs and the unemployment rate. The major findings are that polices that contribute to fostering job creation may have the adverse effect on the average labor productivity and work incentives of regular workers.

Free Research Field

労働経済学