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

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Article

Brookes, Michael ; James, Philip ; Rizov, Marian

Economic and Industrial Democracy

2018

39

3

August

381-403

labour productivity ; employment ; regulation ; manufacturing industry ; comparison

France ; Germany ; Sweden ; United Kingdom

Production management

http://dx.doi.org/10.1177/0143831X16631029

English

Bibliogr.;Statistics

"This article 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. "

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