Employment protection legislation and job stability: A European cross-country analysis

Abstract

Based on Eurostat data on wage employment for the period 1999-2006, this article investigates the dynamics of job tenure across the European Union. The authors' analysis shows no generalized decline in job tenure, but a trend towards shorter tenure among young workers (aged 15-24 years) in many European countries. Their regression results indicate that this trend is associated with the weakening of employment protection provided by law and by trade unions. Given young workers' weak individual bargaining power, the trend towards individualization of the employment relationship may thus affect them disproportionately. Copyright © International Labour Organization 2010 Translation and journal compilation © International Labour Organization.