Labor market regulation : international experience in promoting employment and social protection

Labor market regulation involves many aspects, ranging from how employers contract for the services of workers to the nature of the exchange, including terms of conditions of employment. This area of regulation represents an important and often controversial aspect of public policy in both developed and developing countries. Approaches are dominated by opposing views, one which favors the protection of workers through labor legislation and collective bargaining and the other which emphasizes the advantages of encouraging market processes. In the end, however, what matters are the economic and social outcomes of different approaches. This primer paper reviews different regulatory options regarding hiring and firing and wage determination and summarizes the existing knowledge about their labor market effects. It also reviews two important institutional aspects of labor market regulation -- enforcement and dispute resolution. In an annex to the paper, we summarize the statutory arrangements for various topics related to labor market regulation in 17 countries.Labor Management and Relations,Labor Standards,Health Monitoring&Evaluation,Banks&Banking Reform,Environmental Economics&Policies

Options of public income support for the unemployed in the Philippines and social protection

How can the income support for the unemployed Filipino workers be improved? The study analyzes both arguments in favor of, and against each of the following programs: unemployment insurance, unemployment assistance, severance pay, unemployment insurance savings accounts, public works, and self-employment programs. In doing so, it addresses the following questions: How does a candidate program interact with other labor market institutions? Does the program respond to a country's income shocks such as recessions, and natural disasters? Does the country have sufficient administrative capacity to carry out a program? Does the program fit into existing formal, and informal mechanisms of social risk management? Is there a risk of disrupting, or displacing existing mechanisms, such as transfers between family members? Is the program attuned to the prevailing norms, and culture? The study concludes that all programs have certain advantages, and disadvantages - an argument for the multiplicity of programs and flexibility of their use. Nonetheless, to enhance income protection, the paper proposes a two-prong approach: a) the expansion of public works, and b) the introduction of a new program - individual savings accounts, i.e., either as unemployment insurance savings accounts, or comprehensive savings accounts covering contingencies such as education, health, housing, and old age.Environmental Economics&Policies,Services&Transfers to Poor,Safety Nets and Transfers,Rural Poverty Reduction,Health Economics&Finance

Active labor market programs : policy issues for East Asia

The study debates on active labor market programs (ALMPs) as a valuable employment policy tool intended to increase the quality of labor supply, and demand, versus the disincentive, and dependent passive measures in combating unemployment. While ALMPs have been implemented to varying degrees in East Asia, they still cannot be considered an important policy instrument; yet, careful consideration by policymakers to such programs, could prove responsive to the economic crisis, and to the longer-term requirements of development. An overview of ALMPs is provided, with key issues reviewed for design consideration. The study discusses the techniques used to evaluate ALMPs, and summarizes the evidence on their impacts, identifying key variables associated with successful outcomes in the region. Recommendations suggest the following issues for the formulation of an active labor market policy: setting priorities, by initially developing strong employment services; identifying the roles of the public, and private sectors, which leads to more diverse, innovative, and cost-efficient services, closely oriented to labor demand, but focused on public priorities; promoting partnerships, and dialogue within coordinated policies, and strengthened administrative and operational capacities, provided a balanced public, and private financing is in place.Banks&Banking Reform,ICT Policy and Strategies,Health Economics&Finance,Environmental Economics&Policies,Labor Standards