Employment Protection and Earnings Mobility

A new GLO Discussion Paper finds that the stronger the employment protection for regular contracts, the smaller is earnings mobility, although the effect is stronger among women of high reproductive age.

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GLO Discussion Paper No. 547, 2020

Gendered Effects of Employment Protection on Earnings Mobility Download PDF
Bárcena-Martín, Elena & Medina-Claros, Samuel & Pérez-Moreno, Salvador

GLO Fellows Elena Bárcena-Martín & Salvador Pérez-Moreno

Author Abstract: This paper explores potential gendered effects of employment protection on earnings mobility, differentiating between upward and downward movements. We conduct a micro-macro mobility analysis for 23 European countries over the economic downturn period 2008–2014. The results confirm that, overall, the higher the protection for regular contracts, the lower the earnings mobility (either upwards or downwards) although the effect is stronger among women of high reproductive age. Nevertheless, protection for temporary employment seems to be only associated with reduced downward earnings mobility when considering transitions into and out of employment, with no gender differential effect.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.


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