Composite indicators of labour market regulations in a comparative perspective

Aleksynska, Mariya; Cazes, Sandrine

doi:10.1186/s40172-016-0043-y

Table 2 The resilience of the World Bank Employing Workers Indicator

From: Composite indicators of labour market regulations in a comparative perspective

Report year	WB EWI	WEF	IMD	Fraser
2007	- Rigidity of Employment ➢ Difficulty of Hiring ➢ Rigidity of Hours ➢ Difficulty of redundancy - Redundancy Cost Note: varying methodology behind subcomponents over time: definitions, assumptions about worker tenure, calculation of minimum wage ratio, etc.	- Nonwage labour costs - Rigidity of Employment - Firing Costs	–	- Minimum wages - Mandated cost of hiring - Mandated cost of worker dismissal
2008		- Nonwage labour costs (2007) - Rigidity of Employment (2007) - Firing Costs (2007)	–	- Minimum wages - Mandated cost of hiring - Mandated cost of worker dismissal
2009		- Rigidity of Employment (2008) - Firing Costs (2008)	- Labour market flexibility - Firing Costs	- Minimum wages - Mandated cost of hiring - Mandated cost of worker dismissal
2010		- Rigidity of Employment (2008) - Firing Costs (2008)	- Labour market flexibility - Firing Costs	- Hiring regulations and minimum wages - Hours Regulations - Mandated cost of worker dismissal
2011		- Rigidity of Employment (2009) - Redundancy Cost (2009)	- Labour market flexibility (2010) - Firing Costs (2011)	- Hiring regulations and minimum wages - Hours Regulations - Mandated cost of worker dismissal
2012		- Redundancy Cost (2011)	- Redundancy Cost (2012)	- Hiring regulations and minimum wages - Hours Regulations - Mandated cost of worker dismissal

Years reported in brackets refer to data years as reported in the original source, when such information is available. Example: IMD 2011 report uses the WB LM Flexibility data for the year 2010; IMD 2010 report uses the WB LM Flexibility data, but the year is not reported
Minimum wages: ratio of mandated minimum wage to the average value added per worker, subcomponent of Difficulty of Hiring index
Nonwage labour costs/Mandated costs of hiring: estimate of social security payment (retirement fund, sickness, maternity and health insurance, workplace injury, family allowance, and other obligatory contributions) and payroll taxes associated with hiring an employee in a fiscal year, expressed as a percentage of the worker’s salary in that fiscal year. This item is measured in the WB Doing Business, but not included in the calculation of rankings
Rigidity of Employment/Labour market flexibility: Rigidity of Employment index (the average of three subindices: a Difficulty of Hiring index, a Rigidity of Hours index, and a Difficulty of Firing index) on a 0 (best)-to-100 scale. Higher values indicate more rigid regulation
Firing Cost/Redundancy Cost: estimate of the cost of advance notice requirements, severance payments, and penalties due when terminating a redundant worker, expressed in weekly wages. Note changing worker profile: Reference for 20 years of service is reported prior to the 2012–2013 report; 1, 5, and 10 years of service are reported in the 2012–2013 report
Mandated cost of worker dismissal: based on Redundancy Cost
Hiring regulations and minimum wages: Difficulty of Hiring index; subcomponent of Rigidity of Employment index
Hours Regulations: This subcomponent is based on the Rigidity of Hours index; subcomponent of Rigidity of Employment index

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