You'll need go no further than Italian labor law, but at least they're making
some baby-steps toward economic rationality (thanks to new Nobelist Jean Tirole);
Since 1 March 2015 all new open ended contracts in Italy offer graded
security, that is, severance payments in case of dismissals ... which are gradually and steadily increasing with tenure
without any major discontinuity. These new contracts also reduce the
range of compensations that judges may impose on employers in the
context of judicial procedures on the fairness of the layoff, thereby
reducing the uncertainty associated with the actual costs of dismissals.
Sad that that qualifies as an improvement in the situation for Italians (both employers and employees), but it does. More easily fired or laid off, thus more readily hired. Contemplate the possibilities,
signori.
This particular design of employment protection for open-ended
contracts largely draws on proposals developed by labour economists in
Italy (Boeri and Garibaldi 2006 and 2008), France (Cahuc and Carcillo
2006, Blanchard and Tirole 2008), and Spain (Bentolila et al. and Le
Barbanchon 2012) in order to reduce contractual dualism, improve
incentives for human capital investment in the workplace, and reduce
inefficient layoffs.
Our bold above, so the Italians won't miss that advice comes from
the most recent Nobel laureate in economics.
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