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Does stricter employment protection legislation promote self-employment?

Robson, M. T. (2003) 'Does stricter employment protection legislation promote self-employment?', Small business economics., 21 (3). pp. 309-319.


Using recently developed indicators of the strictness of employment protection legislation in OECD countries, the paper examines the issue of whether strict employment protection legislation may promote self-employment by encouraging employers to contract-out work to self-employed workers. Contrary to the results of previous studies, the paper finds little evidence for a positive relationship between self-employment and the strictness of EPL. While the raw data suggest that a positive relationship may indeed exist, once suitable control variables are introduced into the analysis, it appears that if anything, the opposite may be true: i.e. stricter employment protection legislation may actually reduce self-employment.

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Record Created:26 Aug 2008
Last Modified:30 Jul 2014 15:26

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