Employment Protection and Unemployment

Recently, political discussion about employment protection has again come to the fore in Europe. The most prominent example certainly is the struggle over the Contrat Première Embauche in France in 2006. Many officials claim that the loosening or reorganisation of the employment protection legislation would decrease unemployment because of more flexible labour markets. This is questioned by the advocates of employment protection. The book evaluates – from a theoretical perspective – the possible employment effects of some proposals made, namely an experience-rated unemployment insurance, severance payments, educational decisions and the interaction of employment protection and unionisation.