Employers exploit loopholes to avoid worker protections, impacting job security.
The study looked at how strict employment laws affect people starting their own businesses. They found that when laws make it hard to fire employees, more workers choose to be self-employed but still work for the same company. However, these laws make it less likely for people to start completely independent businesses. The researchers used data from European households between 1994 and 2001 to reach these conclusions.
