Definition of Labor Freedom Index

The Labor freedom index is composed of six quantitative factors: ratio of minimum wage to the average value added per worker, hindrance to hiring additional workers, rigidity of hours, difficulty of firing redundant employees, legally mandated notice period, and mandatory severance pay. The index is based on data collected in connection with the World Bank's Doing Business study.

Related Indicators

• Business Freedom Index
• Trade Freedom Index
• Labor Cost Index
• Fiscal Freedom Index
• Financial Freedom Index