Addressing Labor Market Duality in Croatia : A Single Employment Contract?
Most of the newly created jobs in Croatia are temporary jobs. This contributes to labor market duality: the growing divide between employees with secure, permanent jobs (referred to as insiders) and those with precarious, temporary jobs (referred t...
| Main Authors: | , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/144921582826132240/Addressing-Labor-Market-Duality-in-Croatia-A-Single-Employment-Contract http://hdl.handle.net/10986/33399 |
| Summary: | Most of the newly created jobs in
Croatia are temporary jobs. This contributes to labor market
duality: the growing divide between employees with secure,
permanent jobs (referred to as insiders) and those with
precarious, temporary jobs (referred to as outsiders). Dual
labor market is inefficient from both the social and
economic perspective. It contributes to inequality, and
potentially slows down productivity growth. This Note
considers policy measures to address labor market duality.
It focuses on the proposal of a Single Employment Contract.
By design, the single employment contract eliminates the
divide between permanent and temporary contracts. All
employment contracts are open-ended with employment
protection increasing with seniority. Single Employment
Contract is more flexible than existing permanent contracts,
but provides workers with more protection than temporary contracts. |
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