An Analysis of Economic Effects of Proposed Amendments to the Labor Code of Georgia


Labor Market institutions are expected to have a significant bearing on the country’s economic performance. However, the latest public debates on proposed amendments to the Labor Code of Georgia have been concentrating solely on the legal implications of the changes rather than their economic connotations.

PMC Research Centre is conducting economic analyses of the proposed amendments to the Labor Code of Georgia. The analyses will cover two parts:
• Case studies of the relationships between labor market rigidity and the country’s economic performance based on the experience of other developed and developing countries;
• Quantitative analyses of business leaders’ attitudes toward the proposed amendments.

The objective of this project is to deliver a comprehensive study on the analysis of the economic impacts of initiated draft amendments to the Labor Code of Georgia. The study will offer an opportunity to discuss the anticipated impacts of the proposed amendments from both a legal and economic viewpoint.

Under this project the PMC Research team plans to:
• Conduct research on initiated amendments to the Labor Code of Georgia, which will be made publicly available;
• Present findings to the representatives of decision-making institutions – The Ministry of Justice (the initiator of these changes), the Government of Georgia, the members of Parliament;
• Conduct public presentations and organize debates among interested parties (business associations, labor unions), experts and policy makers;
• Increase public awareness of the economic implications of the proposed amendments.

PMC researchers aim to highlight the economic dimension of the proposed amendments to the Labor Code of Georgia in public debate, and to facilitate the active inclusion of interest groups, experts and policy makers in the discussions. Public debates will be held at the end of May 2013.

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