Labour Market Flexibility and Decent Work

Th is paper reviews evidence from both industrialized and developing countries on the relationship between labour market fl exibility and employment. It is argued that the notion of fl exibility and its impact is often oversimplifi ed. Th e evidence, such as it is, does not provide much support for the view that greater fl exibility results in higher employment. Th ere is more evidence for an impact on the distribution of employment among diff erent groups of the population, but also eff ects which vary widely between countries. Flexibility needs to be considered within a wider framework of policies and institutions to promote decent work. JEL Classifi cation: J20