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Working paper

Влияние законодательства о защите занятости на кадровую политику предприятий

Мироненко О. Н.
Employers incur costs while fulfilling the requirements of employment protection legislation in the processes of hiring and firing. The paper contains a review of the main theoretical models, empirical results, and methodological issues concerning the impact of these costs on employers’ practices in hiring, firing, training and remuneration. Overall, if there is a wage flexibility, then employment protection does not influence significantly on hiring and firing policies and external labor demand adjustment to shocks. But if wages are rigid, then stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts, dismissal procedures, and, in some cases, it may lead to the growth of wages and human capital investments of firms.