Employment Protection, Skill Structure and Labor Market Outcomes

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In this research project it is analyzed 1) how the formal qualifications and skills of employees and employment protection regulations exactly interact and 2) which effects are caused by a change in the structure of skills. Having gained knowledge of the relationship between skills and the effects of employment protection regulations, the question is posed what types of regulations can be enforced either in individual or collective labor contracts or using the political process. Summing up, this research project contributes to an analysis of the consequences which result from a shift in the skill structure with respect to the institutional design of the labor market.