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European Union Dual Labour Markets 99 15 JOB DESTRUCTION, LESS THAN 2 YEARS TENURE 13 11 9 7 5 –2 0 2 4 6 8 10 TIME (IN YEARS) Figure 2.15 Job destruction rate during transition (Dolado et al., 2015b). 48 JOB-FINDING RATE 46 44 42 40 –2 0 2 4 6 8 10 Figure 2.16 Job finding rate during transition (Dolado et al., 2015b).
100 Juan J. Dolado Table 2.2 Political support for transition to SOEC (Dolado et al., 2015b) Pro Con Indiff Young workers Employed 100 a 0 0 Not employed 100 0 0 Older workers Employed 31.7 68.3 0 Not employed 0 0 100 Overall 79.7 10.2 10.1 a All numerical entries refer to population measures in per cent. EPL reform, when EPL for unfair dismissals of workers on PC went down from 45 d.w.y.s. to 33 d.w.y.s, whereas compensation for nonrenewal of TC went up gradually from 8 d.w.y.s. to 12 d.w.y.s. The main finding is that while SOEC will bring in a welfare gain (in terms of consumption equivalent units for the current population at the time of the reform) of 1.93 per cent, the 2012 reform would imply half of that gain. 2.7.3 Single/Unified Contracts in Practice Nonetheless, a key requirement of all these proposals is the restriction of the definition of unfair dismissal to false reasons, discrimination and prohibited grounds. In other words, any economic motive or personal reason related to the worker’s performance (such as reduction of individual productivity or unsuitability) would be a fair and justified reason for dismissal, with the judicial review of courts restricted to just assessing that the purported reason is not in fact masking prohibited grounds. However, implementing this requirement might be very difficult in countries whith a long tradition of judicial review of employers’ decisions (see Ichino et al., 2003 and Jimeno et al., 2015). 15 For this reason, since the aim of SOEC is to ensure that open-ended contracts become the default option of firms, they should include a probation period to screen applicants, as Dolado et al. (2015b) suggest. The objective is not to eliminate short-duration jobs, but rather to avoid the rotation of temporary workers on the same job as a means to save costs. Nonetheless, it is clear that the termination of an open-ended contract is more costly and/or time-consuming for the firm than the expiration of a fixed-term contract. This is true even if redundancy pay were equalized across TC and PC. Workers on PC must receive an advance notification explaining the motive for the dismissal and they have a right to challenge this decision in court. Moreover, the dismissal of several workers within a short time may entitle the worker to higher compensation or additional services as part of a collective dismissal procedure. None of these obligations exists in
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Economics without Borders If treate
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University Printing House, Cambridg
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vi Contents 1.4.3 Reforming the Sta
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viii Contents 5.3 Approaches in Ind
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x Contents 9.3 The Trade-Off betwee
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xii Contents 12.4.4 Inequality of O
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Figures 1.1 Entry effects near and
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Tables 2.1 Chronology of EPL reform
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xx Foreword Another important facto
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Contributors roberto barcellan Euro
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Contributors xxv vigdis kvalheim No
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Introduction Richard Blundell, Este
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Introduction 3 2. Knowledge-based g
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Introduction 5 for innovation or th
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Introduction 7 burden was the polic
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Introduction 9 however, quite clear
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Introduction 11 extremely useful fo
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Introduction 13 An overarching them
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Introduction 15 involved). Another
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Introduction 17 proportion of rail
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Introduction 19 ‘macroeconomics i
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Introduction 21 private equity mark
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Introduction 23 such changes bear c
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Introduction 25 outlined, to draw s
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Introduction 27 Chapter 14 starts b
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1 Innovation and Growth: The Schump
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Innovation and Growth: The Schumpet
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Population, Migration, Ageing and H
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Winners and Losers of Globalization
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10 Fiscal and Monetary Policies aft
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Country mean score 1.5 1.2 0.9 0.6
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634 Index Diversified Cities, 385 D
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636 Index Native Population, 114, 1
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