Employing workers, difficulty of hiring index - Doing business - Development outcomes - African Development Indicators
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The difficulty of hiring index measures (i) whether fixed term contracts are prohibited for permanent tasks; (ii) the maximum cumulative duration of fixed term contracts; and (iii) the ratio of the minimum wage for a trainee or first time employee to the average value added per worker. An economy is assigned a score of 1 if fixed term contracts are prohibited for permanent tasks and a score of 0 if they can be used for any task. A score of 1 is assigned if the maximum cumulative duration of fixed term contracts is less than 3 years; 0.5 if it is 3 years or more but less than 5 years; and 0 if fixed term contracts can last 5 years or more. Finally, a score of 1 is assigned if the ratio of the minimum wage to the average value added per worker is 0.75 or more; 0.67 for a ratio of 0.50 or more but less than 0.75; 0.33 for a ratio of 0.25 or more but less than 0.50; and 0 for a ratio of less than 0.25. For more information, visit http://www.doingbusiness.org/MethodologySurveys/. Source: World Bank, Doing Business project (http://www.doingbusiness.org/).
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