Labour Relations and Modes of Employment

NEUJOBS Policy Brief D6.6

11 Pages Posted: 23 Jul 2013 Last revised: 19 Aug 2017

See all articles by Olaf van Vliet

Olaf van Vliet

Leiden University - Leiden Law School; Leiden University - Department of Economics

Miroslav Beblavy

Centre for European Policy Studies (CEPS)

Koen Caminada

Leiden Law School - Department of Economics

Stefan Domonkos

University of Mannheim - Mannheim Centre for European Social Research (MZES)

Jan Drahokoupil

University of Mannheim - Mannheim Centre for European Social Research (MZES); European Trade Union Institute (ETUI)

Kees Goudswaard

Leiden Law School - Department of Economics

Ferry Koster

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences

Lucia Mytna Kurekova

Slovak Governance Institute; Central European University

John McQuinn

Esri

Maria Münderlein

Erasmus University Rotterdam (EUR)

Gavin Murphy

Economic and Social Research Institute, Ireland

Martin Myant

University of the West of Scotland

Iulia Siedschlag

Economic and Social Research Institute Dublin; Trinity College Dublin - Department of Economics

Date Written: May 1, 2013

Abstract

In many European and other Western countries, labour markets will continue to be reformed in order to accommodate further adjustments to economic, demographic and socio-ecological developments. Moreover, labour market institutions and other aspects of labour markets receive a lot of attention in EU policy debates because they are regarded as key factors of innovation and economic growth. Indeed, our estimates indicate that generous unemployment benefit systems and stringent employment protection legislation lead to lower innovation intensity. These results suggest that high firing costs discourages investment in innovative activities. Interestingly, our case studies reveal that in Central and Eastern European countries institutions such as employment protection legislation and unemployment benefits appeared relatively unimportant to attracting large-scale inward investors. Instead, the lower wage level than in Western Europe appears to be a key factor, alongside the availability of large numbers of semi-skilled workers. We analyze the relationship between labour market institutions and innovation. Furthermore, we examine how EU countries pursue labour market policy reforms, focusing on the key policies of the flexicurity model. Finally, we asses the relative importance of labour market institutions in transitions on the labour market.

Keywords: Labour market policy, innovation, employment protection legislation, labour relations, Central and Eastern European countries

JEL Classification: H53, J50, J60

Suggested Citation

van Vliet, Olaf and Beblavy, Miroslav and Caminada, Koen and Domonkos, Stefan and Drahokoupil, Jan and Goudswaard, Kees and Koster, Ferry and Mytna Kurekova, Lucia and McQuinn, John and Münderlein, Maria and Murphy, Gavin and Myant, Martin and Siedschlag, Iulia, Labour Relations and Modes of Employment (May 1, 2013). NEUJOBS Policy Brief D6.6. Available at SSRN: https://ssrn.com/abstract=2295456 or http://dx.doi.org/10.2139/ssrn.2295456

Olaf Van Vliet (Contact Author)

Leiden University - Leiden Law School ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Leiden University - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Miroslav Beblavy

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres
Brussels, 1000
Belgium

Koen Caminada

Leiden Law School - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands
++31715277858 (Phone)

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/caminada.html

Stefan Domonkos

University of Mannheim - Mannheim Centre for European Social Research (MZES) ( email )

D-68131 Mannheim
Germany

Jan Drahokoupil

University of Mannheim - Mannheim Centre for European Social Research (MZES) ( email )

D-68131 Mannheim
Germany

HOME PAGE: http://drahokoupil.blogspot.com

European Trade Union Institute (ETUI) ( email )

B-1210 Brussels
Belgium

Kees Goudswaard

Leiden Law School - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

Ferry Koster

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences ( email )

3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.ferrykoster.nl

Lucia Mytna Kurekova

Slovak Governance Institute ( email )

Gajova 4
Bratislava, 81109
Slovakia

Central European University ( email )

Nador utca 9
Budapest, H-1051
Hungary

John McQuinn

Esri ( email )

380 New York Street
Redlands, CA 92373
United States

Maria Münderlein

Erasmus University Rotterdam (EUR) ( email )

Zuid-Holland
Netherlands

Gavin Murphy

Economic and Social Research Institute, Ireland ( email )

Whitaker Square
Sir John Rogerson's Quay
Dublin 2
United States

Martin Myant

University of the West of Scotland ( email )

Paisley High Street
PA1 2BE
Paisley, Scotland PA1 2BE
United Kingdom

HOME PAGE: http://www.paisley.ac.uk/schoolsdepts/business/cces/researchers/martin-myant.asp

Iulia Siedschlag

Economic and Social Research Institute Dublin ( email )

Whitaker Square
Sir John's Rogerson Quay
Dublin
Ireland

Trinity College Dublin - Department of Economics ( email )

Dublin
Ireland

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