Laws in most West European countries give workers strong job rights, including the right to advance notice of layoff and the right to severance pay or other compensation if laid off. Many of these same countries also encourage hours adjustment in lieu of layoffs by providing prorated unemployment compensation to workers on reduced hours. This paper compares the adjustment of manufacturing employment and hours in West Germany, France and Belgium, three countries with strong job security regulations and well-established short-time compensation systems, with that in the United States.
Social Protection vs. Economic Flexibility: Is There a Tradeoff?K. Abraham and S.N. Houseman ,
Social Protection versus Economic, ed. by Rebecca M. Blank. University of Chicago Press, Chicago , chap. 3, pp. 59-93.