|
Deep Blue at the University of Michigan >
All Collections >
International Policy Center - Working Paper Series >
|
Please use this persistent URL to cite or link to this item:
|
| Title: | Why Don't Firms Take Advantage of More Flexible Labor Options? Regulation, Enforcement and Corruption, |
| Authors: | Hallward-Driemier, Mary
Helppie, Brooke |
| Keywords: | regulation, enforcement, corruption, labor options |
| Issue Date: | 12-Sep-2007 |
| Series/Report no.: | IPC Working Paper Series No. 38 |
| Abstract: | This paper investigates how employment regulations affect firms’ use of more
flexible employment arrangements. Using firm level data from 27 countries in Eastern
Europe and Central Asia the paper not only looks at variations in the formal, de jure
restrictions on labor practices across countries, but explores variations in their enforcement
to analyze the impact of regulations on labor flexibility as experienced by firms. It finds
that greater regulatory burdens are associated with more firms using flexible labor
arrangements. However, the extent to which they are used declines with increased
regulatory burdens. Thus, while greater regulations may make flexibility more attractive,
they may also curtail the share of workers under these arrangements. Methodologically, this
underscores the importance of allowing for separate effects between the decisions to
participate in these arrangements with the share of workers to be covered by them. The
paper then looks to see whether differences in enforcement – due to discretion on the part of officials, the prevalence of more general corruption, as well as specific payments to labor officials – serve to relax the effect of regulations on firms. The results confirm that greater discretion and general corruption do serve to increase the extent of flexible labor arrangements, although the costs of paying bribes to labor officials themselves has less of this offsetting effect. |
| URI: | http://hdl.handle.net/2027.42/55752 |
| Appears in Collections: | International Policy Center - Working Paper Series
|
Files in This Item:
| File |
Description |
Size | Format | |
|---|
| IPC-working-paper-038-HallwardHelppie.pdf | | 191Kb | Adobe PDF | View/Open |
|
Deep Blue encourages the fair use of copyrighted material, and you are free to link to content here without asking for permission. Consult the document(s) and/or contact the copyright holder for additional rights questions and requests.
|
