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

The objective of this project was to conduct a comprehensive study on the analysis of the economic impacts of initiated draft amendments in the Labor Code of Georgia. Public debates on the initiated draft amendments were mainly discussed from the legal perspective and ignores or did not give enough attention to the potential impacts on the country’s economic performance and labor market. The overall purpose of the project was to support proper and justified policy changes and policy elaboration for the labor market of Georgia. The specific objective was to activate the role of economic dimension of the proposed changes in the Labor Code in public debate and specifically facilitate the enrollment of interest groups, experts and policy makers in the discussions. The pros and cons of the amendments were analyzed and summarized.

PMCG has conducted economic analyses of the proposed amendments to the Labor Code of Georgia. The analyses covered 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 was to deliver a comprehensive study on the analysis of the economic impacts of initiated draft amendments to the Labor Code of Georgia. The study has provided an opportunity to discuss the anticipated impacts of the proposed amendments from both a legal and economic viewpoint.