Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia

The term labor market duality can be used to describe different forms of labor market segmentation. Nevertheless, this term is most often used to describe the segregation between permanent employees and workers employed on a temporary basis. There is a consensus in the literature that labor market d...

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Main Author: Mislav Brkić
Format: Article
Language:English
Published: The Institute of Economics, Zagreb 2015-06-01
Series:Croatian Economic Survey
Subjects:
Online Access:http://hrcak.srce.hr/file/207659
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author Mislav Brkić
author_facet Mislav Brkić
author_sort Mislav Brkić
collection DOAJ
description The term labor market duality can be used to describe different forms of labor market segmentation. Nevertheless, this term is most often used to describe the segregation between permanent employees and workers employed on a temporary basis. There is a consensus in the literature that labor market duality most often occurs after governments engage in asymmetric reforms of the labor market legislation, which significantly liberalize the use of temporary contracts, while retaining a high level of employment protection for permanent workers. This paper analyzes whether in Croatia as a country with relatively rigid labor market legislation there are signs of labor market duality. The analysis is motivated by the recent data on employment flows showing that companies have intensified temporary hiring in recent years, which might be considered as a sign of increasing labor market duality. However, this paper discusses labor market developments in the context of persistent recession, taking into account that such changes in the employment flows could be a cyclical phenomenon reflecting high risk aversion of companies.
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spelling doaj.art-45d9e9dfd1274f2586a39a35e99649e82022-12-21T18:53:18ZengThe Institute of Economics, ZagrebCroatian Economic Survey1330-48601846-38782015-06-0117154510.15179/ces.17.1.1Labor Market Duality and the Impact of Prolonged Recession on Employment in CroatiaMislav Brkić0Croatian National BankThe term labor market duality can be used to describe different forms of labor market segmentation. Nevertheless, this term is most often used to describe the segregation between permanent employees and workers employed on a temporary basis. There is a consensus in the literature that labor market duality most often occurs after governments engage in asymmetric reforms of the labor market legislation, which significantly liberalize the use of temporary contracts, while retaining a high level of employment protection for permanent workers. This paper analyzes whether in Croatia as a country with relatively rigid labor market legislation there are signs of labor market duality. The analysis is motivated by the recent data on employment flows showing that companies have intensified temporary hiring in recent years, which might be considered as a sign of increasing labor market duality. However, this paper discusses labor market developments in the context of persistent recession, taking into account that such changes in the employment flows could be a cyclical phenomenon reflecting high risk aversion of companies.http://hrcak.srce.hr/file/207659labor market duality; employment protection; recession; Croatia; EU
spellingShingle Mislav Brkić
Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia
Croatian Economic Survey
labor market duality; employment protection; recession; Croatia; EU
title Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia
title_full Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia
title_fullStr Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia
title_full_unstemmed Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia
title_short Labor Market Duality and the Impact of Prolonged Recession on Employment in Croatia
title_sort labor market duality and the impact of prolonged recession on employment in croatia
topic labor market duality; employment protection; recession; Croatia; EU
url http://hrcak.srce.hr/file/207659
work_keys_str_mv AT mislavbrkic labormarketdualityandtheimpactofprolongedrecessiononemploymentincroatia