The Case for an European Style Labor Regulation for

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The Case for an European Style Labor Regulation
for Newly Industrial Countries (NICs) E1-
Group 4 Jaime Araujo Limdara Chea Avital
Eliasov Rafael Guimaraes Patricia Sennequier
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Newly Industrialized Countries

• EXAMPLES
• China
• Brazil
• India
• Mexico
• Argentina
• Malaysia

• THEIR ISSUES
• Social inequality
• High levels of poverty
• High levels of illiteracy
• Uneven opportunity for educational development
• Need to grow
• Extremely volatile growth

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What we have found
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What we have also found !

• Increasing evidence that well applied labor
  regulations have positive impact on
• Employment
• Productivity
• Reduction of work stress
• Contribution to the community
• On the other hand, in the US
• Income inequality is increasing (society already
  much more unequal than European countries)
• The highest childhood poverty rate of
  industrialized countries
• Rise in work related stress, obesity, and other
  health problems

1990 data
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The Best Option for the NICs
An Improved European Model Adapted to The Local
Reality

• Benefits for NICs
• Smooth the negative effects of the volatile
  economy on the society (safety net)
• Decrease the gap between rich and poor gt
  STABILITY (less social unrest)
• Reduce unemployment
• Increase productivity
• Better quality of life for constituents
• Some Suggestions for Improvement
• Time limit on unemployment insurance programs
  (incentive to look for job)
• Bonus in case of finding a job (decreasing over
  time and adapted to circumstances)
• Allowance for reduction in work hours in case of
  economic downturn (instead of firing)
• Avoid financing unemployment benefits through
  payroll taxes (increase labor cost)