Labour Market Flexibility and Decent Work

This paper reviews evidence from both industrialized and developing countries on the relationship between labour market flexibility and employment. It is argued that the notion of flexibility and its impact is often oversimplified. Th e evidence, such as it is, does not provide much support for the view that greater flexibility results in higher employment. Th ere is more evidence for an impact on the distribution of employment among different groups of the population, but also effects which vary widely between countries. Flexibility needs to be considered within a wider framework of policies and institutions to promote decent work.