Abstract
All studies that have explored the impact that job-security legislation has had on labor-market performance have been handicapped by the lack of a good quantitative indicator covering a long enough historical period to reflect the drastic changes that have occurred in this area since World War II. This study has developed such an indicator in hopes of making a key tool available for labor-market research. The paper describes the reason that job security is important for labor market performance, and outlines the steps taken to develop this time-series indicator, which should help to deliver a more definitive verdict on how job-security laws have affected labor market performance in the developed countries since World War II.
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