The rigidity of labour market has several important negative economic consequences: it stifles job creation, increases discrimination of those it is actually aimed at protecting (young, women and low skilled), hurts the unemployed, slows down economic restructuring and damages its global...

This paper considers findings from a panel of Croatian and Slovenian firms throughout the period 1995–2000. Scrutiny of Croatia and Slovenia sheds light on regional issues, owing to their small size and their being part of the same country until the early 1990s. More particularly, the issues...