Polona Domadenik, Robert Kase,
University of Ljubljana
Today, indexes constructed by credible international institutions (OECD, World Bank) are recommended for comparative studies of labour market regulation because, apart from their constant updates, the methodology used allows comparisons between countries and over time. Therefore, we decided to use the World Bank database which is the source of the “Doing Business” annual reports. We will first present some general conclusions regarding the flexibility of Slovenia’s and Croatia’s labour market regulation benchmarked against selected European countries. Then a more detailed analysis of each component of labour market regulation represented by the proposed indexes is discussed. We conclude with key findings and suggest some possible venues for future reforms of Slovenian and Croatian labour market regulation in line with the aim of boosting labour market flexibility.
KEY WORDS: labour market, regulation, Slovenia, Croatia, flexibility.