Naslov
Addressing Labor Market Duality in Croatia. A Single Employment Contract?

Autori
Rutkowski, Jan ; Oriolo, Claudia ; Tomic, Iva ; Madzarevic-Sujster, Sanja

Izvornik
World Bank Other Operational Studies

Vrsta, podvrsta
Ostale vrste radova, ostalo

Godina
2016

Ključne riječi
temporary employment ; dual labor market ; single employment contract ; Croatia

Sažetak
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. As such this is an attempt to balance flexibility with fairness in the labor market. The adoption of the Single Employment Contract proposal requires a compromise between social partners. Trade Unions need to recognize employers need for flexibility. Employers need to acknowledge employees need for job security. The compromise will serve the interest of the growing numbers of outsiders – workers with precarious jobs – and will promote equality and efficiency.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA