Uses and Abuses of the OECD's Employment Protection Legislation Index in Research and EU Policy Making

29 Pages Posted: 7 Dec 2016

See all articles by Martin Myant

Martin Myant

European Trade Union Institute (ETUI)

Laura Brandhuber

Independent

Date Written: December 7, 2016

Abstract

This paper provides a critical assessment of the OECD's Employment Protection Legislation (EPL). This indicator is designed to measure and compare employment protection legislation across countries and has dominated much of recent labour market policy making in the EU.

The authors of this paper demonstrate that the construction of this instrument involves simplifications, estimations and omissions that make it highly suspect as an indicator of employees' protection. Empirical tests do not confirm the predicted negative effects of laws to protect employment. EU policy documents tacitly acknowledged this, but continue to give policy recommendations based on unproven claims.

The paper also asks whether this instrument can be improved or should be abolished and what could be more useful alternatives.

Keywords: labour market policy; EU policy; unemployment; EU Recommendation; EU countries

Suggested Citation

Myant, Martin and Brandhuber, Laura, Uses and Abuses of the OECD's Employment Protection Legislation Index in Research and EU Policy Making (December 7, 2016). ETUI Research Paper - Working Paper 2016.11, Available at SSRN: https://ssrn.com/abstract=2881873 or http://dx.doi.org/10.2139/ssrn.2881873

Martin Myant (Contact Author)

European Trade Union Institute (ETUI) ( email )

B-1210 Brussels
Belgium

Laura Brandhuber

Independent

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