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Does Deregulation Help? the Impact of Employment Protection Reforms on Youths' Non-Employment and Temporary Employment Risks in Europe
The empirical analyses are based on a pooled cross-sectional design by using yearly micro-data from the European Labour Force Survey for 14 Western and 8 Eastern European countries for the period from 1992 to 2011. This database provides unique large-scaled, standardised micro data. We apply multilevel models with three levels (individual-, country- and time-level) implemented in a two-step estimation procedure to investigate contextual influences on individual age-related temporary employment and non-employment risks. At the macro-level we use cross-national and cross-temporal variation to quantify the impact of EPL reforms under control of other macro-institutional and macro-structural factors. Further, we control for country and time fixed-effects to account for unobserved heterogeneity.
Our analyses reveal heterogeneous inequality trends in youths’ temporary employment and non-employment risks in Europe. Moreover, our results cast doubt on the effectiveness of EPL reforms.