Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Perhaps someone can explain to me how the ability to fire people more easily will boost the labor participation rate?

Is it that the fear that once a firm hires someone they will never be able to let them go in case of a business downturn?

As far back as I can remember, the drumbeat from business associations has been exactly that. It never made sense to me, but then again I'm not an employer.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Carrie (migeru at eurotrib dot com) on Wed Mar 29th, 2006 at 03:45:34 PM EST
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In case of a business downturn, there is the "licenciement pour motif economique". Employers wish this procedure would disappear as it implies compensation for contract termination plus paying an outplacement agency for finding a new position outside the company.
Too expensive for employers to afford, I guess... Employees should cooperate and try and be more expandable.<snark at the system>

When through hell, just keep going. W. Churchill
by Agnes a Paris on Wed Mar 29th, 2006 at 04:04:23 PM EST
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