The new labor freedom factor is a quantitative factor based on objective data from the World Bank's Doing Business study. It provides reliable cross-country data on regulations concerning minimum wages, laws inhibiting layoffs, severance requirements, and measurable regulatory burdens on hiring, hours, and so on. Specifically, four quantitative components are equally weighted as 25 percent of the labor freedom factor: Minimum wage, Rigidity of hours, Difficulty of firing redundant employees, Cost of firing redundant employees. The country's labor freedom score ranges from 0 to 100, where 100 represent the maximum degree of labor freedom.
Type of variable: Continuous
Last updated by source: 2021-01-29