Protection measures affect the demand for unskilled labor

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In the unskilled labor market, workers are often young and inexperienced. Having little past performance to judge potential employees on, many firms hire workers for a trial period with the understanding that the worker will be dismissed for sub standard performance.

The commentators think France should reduce its job protection rights. Job protection rights make it relatively difficult and expensive for French firms to fire workers.

How might stringent job protection measures affect the demand for unskilled labor?

Reference no: EM13219725

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