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Impact of Regulating Non-Regular Employment on Firms’ Employment Decisions

KDIJEP 2018-11-19

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■ Regulations on the use of non-regular workers can encourage the conversion to regular workers and reduce firms’ labor use. They can also increase the use of non-regular employment types that are not subject to the law.

■ The impact of regulating the use of non-regular workers on firms’ employment decisions can vary depending on the degree of rigidity in working conditions for regular employees.

■ To fulfill the intended goals of the law, measures to ease the rigidity of working conditions for regular employees must be sought.

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