International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online)

The Impact of a Country’s Employment Protection Legislation on its Economic Prosperity
Laura Muller, Paul D. Berger

Abstract
This paper will analyze the impact of the employment protection legislation strictness on labor efficiency, unemployment outcomes, international trade outcomes and economy prosperity. Our general hypothesis is that as the strictness of a country’s employment protection legislation decreases, the efficiency of its labor increases, the unemployment rate decreases, its imports relative to its exports decrease, and the country’s economy improves. We will analyze data archives from the OECD (Organization for Economic Co-operation and Development). A goal of this paper is to find empirical evidence supporting the changes in the labor institutions and laws that potentially would improve a country’s economy.

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