Employment regulation and productivity: is there a case for deregulation?

Article

Brookes, M., James, P. and Rizov, M. 2018. Employment regulation and productivity: is there a case for deregulation? Economic and Industrial Democracy. 39 (3), pp. 381-403. https://doi.org/10.1177/0143831X16631029
TypeArticle
TitleEmployment regulation and productivity: is there a case for deregulation?
AuthorsBrookes, M., James, P. and Rizov, M.
Abstract

This paper explores empirically the economic validity of the relatively limited approach to the regulation of employment protection pursued in the UK over the last three decades and within the European Union more recently. It does so by comparing the UK’s manufacturing labour productivity performance with those of three countries – France, Germany and Sweden – that possess more stringent employment protection laws. The findings reveal that while productivity growth in the UK was superior to France and Sweden, it was lower than in Germany. More generally, the study’s findings fail to support the existence of a straightforward negative relationship between regulatory stringency and productivity growth.

KeywordsEmployment protection, labour productivity, legal regulation, United Kingdom, France, Germany, Sweden
PublisherSAGE Publications
JournalEconomic and Industrial Democracy
ISSN0143-831X
Electronic1461-7099
Publication dates
Online03 Mar 2016
Print01 Aug 2018
Publication process dates
Deposited07 Apr 2016
Accepted01 Feb 2016
Output statusPublished
Accepted author manuscript
Copyright Statement

Michael Brookes, Philip James, and Marian Rizov, Employment regulation and productivity: Is there a case for deregulation?, Economic and Industrial Democracy, Vol 39, Issue 3, pp. 381 - 403.
Copyright © 2016 The Authors. Reprinted by permission of SAGE Publications.

Digital Object Identifier (DOI)https://doi.org/10.1177/0143831X16631029
LanguageEnglish
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Brewster, C., Brookes, M. and Wood, G. 2008. Similarity, isomorphism or duality? Recent survey evidence on the human resource management policies of multinational corporations. British Journal of Management. 19 (4), pp. 320-342. https://doi.org/10.1111/j.1467-8551.2007.00546.x
German employers' inputs to employee skills development
Croucher, R. and Brookes, M. 2009. German employers' inputs to employee skills development. Industrial relations. 48 (2), pp. 231-236. https://doi.org/10.1111/j.1468-232X.2009.00555.x
Varieties of firm: complementarity and bounded diversity
Wood, G., Croucher, R., Brewster, C., Collings, D. and Brookes, M. 2009. Varieties of firm: complementarity and bounded diversity. Journal of Economic Issues. XLIII (1), pp. 241-260.
Human resource management and performance in European firms
Rizov, M. and Croucher, R. 2009. Human resource management and performance in European firms. Cambridge Journal of Economics. 33 (2), pp. 253-272. https://doi.org/10.1093/cje/ben037
An investigation into the compatibility of consultation and performance comparison in the UK's policy of best value
Higgins, P., Roper, I. and James, P. 2005. An investigation into the compatibility of consultation and performance comparison in the UK's policy of best value. International Journal of Consumer Studies. 29 (2) (2), pp. 148-158. https://doi.org/10.1111/j.1470-6431.2004.00423.x
Best value: is it delivering?
Higgins, P., James, P. and Roper, I. 2004. Best value: is it delivering? Public Money & Management. 24 (4), pp. 251-258. https://doi.org/10.1111/j.1467-9302.2004.00427.x
Transition and enterprise restructuring: the role of budget constraints and bankruptcy costs
Rizov, M. 2005. Transition and enterprise restructuring: the role of budget constraints and bankruptcy costs. Economics Letters. 86 (1), pp. 129-134. https://doi.org/10.1016/j.econlet.2004.05.004
Human capital, market imperfections and labor reallocation in transition
Rizov, M. and Swinnen, J. 2004. Human capital, market imperfections and labor reallocation in transition. Journal of Comparative Economics. 32 (4), pp. 745-774. https://doi.org/10.1016/j.jce.2004.08.002
Investment and financial constraints in transition economies: micro evidence from Poland, the Czech Republic, Bulgaria and Romania
Rizov, M., Vandenbussche, H. and Konings, J. 2003. Investment and financial constraints in transition economies: micro evidence from Poland, the Czech Republic, Bulgaria and Romania. Economics Letters. 78 (2), pp. 253-258. https://doi.org/10.1016/S0165-1765(02)00210-0
Transitional and enterprise restructuring: the development of individual farming in Romania
Rizov, M., Gavrilescu, D., Mathijs, E., Gow, H. and Swinnen, J. 2001. Transitional and enterprise restructuring: the development of individual farming in Romania. World Development. 29 (7), pp. 1257-1274. https://doi.org/10.1016/S0305-750X(01)00030-4
Influences on small firm compliance-related behaviour: the case of workplace health and safety.
Owen, R., James, P., Smallbone, D. and Vickers, I. 2006. Influences on small firm compliance-related behaviour: the case of workplace health and safety. Environment and Planning C: Politics and Space. 24 (6), pp. 827-846. https://doi.org/10.1068/c0564
Understanding small firm responses to regulation: the case of workplace health and safety
Vickers, I., Smallbone, D., James, P. and Owen, R. 2005. Understanding small firm responses to regulation: the case of workplace health and safety. Policy Studies. 26 (2), pp. 149-169. https://doi.org/10.1080/01442870500127626
Workplace partnership and public service provision: the case of the 'Best Value' performance regime in British local government
Roper, I., Higgins, P. and James, P. 2005. Workplace partnership and public service provision: the case of the 'Best Value' performance regime in British local government. Work, Employment and Society. 19 (3), pp. 639-649. https://doi.org/10.1177/0950017005055677
Promoting family friendly policies: is the basis of the Government's ethical standpoint viable?
Roper, I., Cunningham, I. and James, P. 2003. Promoting family friendly policies: is the basis of the Government's ethical standpoint viable? Personnel Review. 32 (2), pp. 211-230. https://doi.org/10.1108/00483480310460225
Are Works Councils and Joint Consultative Committees a threat to Trade Unions? A comparative analysis
Brewster, C., Wood, G., Croucher, R. and Brookes, M. 2007. Are Works Councils and Joint Consultative Committees a threat to Trade Unions? A comparative analysis. Economic and Industrial Democracy. 28 (1), pp. 49-77. https://doi.org/10.1177/0143831X07073027
What determines the size of HR function? A cross-national analysis
Brookes, M., Brewster, C., Wood, G. and Van Ommeren, J. 2006. What determines the size of HR function? A cross-national analysis. Human Resource Management. 45 (1), pp. 3-21. https://doi.org/10.1002/hrm.20093
Social relations, firms and societies: a study of institutional embeddedness
Brookes, M., Brewster, C. and Wood, G. 2005. Social relations, firms and societies: a study of institutional embeddedness. International Sociology. 20 (4), pp. 403-426. https://doi.org/10.1177/0268580905058322
Pulled apart, pushed together: diversity and unity within the Congress of South African Trade Unions
Brookes, M., Hinks, T., Wood, G., Dibben, P. and Roper, I. 2004. Pulled apart, pushed together: diversity and unity within the Congress of South African Trade Unions. Relations Industrielles / Industrial Relations. 59 (4), pp. 769-792. https://doi.org/10.7202/011338ar
Collective and individual voice: convergence in Europe?
Brewster, C., Croucher, R., Wood, G. and Brookes, M. 2007. Collective and individual voice: convergence in Europe? International Journal of Human Resource Management. 18 (7), pp. 1246-1262. https://doi.org/10.1080/09585190701393582
Shaping the bargaining agenda. The Audit Commission and public service reform in British local government
Roper, I., Higgins, P. and James, P. 2007. Shaping the bargaining agenda. The Audit Commission and public service reform in British local government. The International Journal of Human Resource Management. 18 (9), pp. 1589-1607. https://doi.org/10.1080/09585190701570650
The role of competition in best value: how far does it differ to CCT?
Higgins, P., Roper, I. and James, P. 2005. The role of competition in best value: how far does it differ to CCT? Local Government Studies. 31 (2), pp. 219-235. https://doi.org/10.1080/03003930500032148
Rural development under the European CAP: the role of diversity
Rizov, M. 2005. Rural development under the European CAP: the role of diversity. The Social Science Journal. 42 (4), pp. 621-628. https://doi.org/10.1016/j.soscij.2005.09.003
The price of EU accession: an insight into the Bulgarian real estate market
Rizov, M. 2004. The price of EU accession: an insight into the Bulgarian real estate market. Property Management. 22 (1), pp. 72-83. https://doi.org/10.1108/02637470410525509
An essay on the agricultural production organization in former communist countries
Rizov, M. 2003. An essay on the agricultural production organization in former communist countries. The Social Science Journal. 40 (4), pp. 665-672. https://doi.org/10.1016/S0362-3319(03)00078-8