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Risks in the human capital model and employment protection legislation for informal labour markets


Dr. Tamaro J. Green

TJG News:

2021-04-26 23:10:50 viewed: 607


The lack of employment protection legislation for informal labour markets presents a number of risks.  Informal labour markets reduce the educational and career growth opportunities for employees.  Informal labour markets also tend to serve the more vulnerable of society such as women or minority groups.  Informal labour markets may also damage the ability for an economy to meet crisis situations as is the case during the health pandemic.  Portoa, Eliab, and Tealdi (2017) suggest informal employment serves as a buffer during economic downturns.  The buffer of informal labour markets may remain when the economy improves as with the emergence of global digital labour platforms.  Bratti, Conti, and Sulis (2021) study the human capital model with employment protection legislation and incentives for corporations to invest in employees.  Bratti et al. (2021) suggest reductions in the large divisions in employment protection legislation between permanent and temporary employees may reduce productivity.





Bratti, M., Conti, M., & Sulis, G. (2021). Employment protection and firm-provided training in dual labour markets. Labour Economics, 69, 101972. doi:

Portoa, E. D., Eliab, L., & Tealdi, C. (2017). Informal work in a flexible labour market. Oxford Economic Papers, 69(1), 143–164.



Dr. Tamaro Green is a computer science researcher and the founder of TJG Web Services.  TJG Web Services, LLC is a consulting firm in the field of information technology.  Dr. Green writes on topics of privacy, security, and ethics in information technology and computer science.

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