At the same time more stringent EPL for regular workers appears to be associated with higher unemployment, at least for certain categories of workers (e.g. Bassanini etal., The Drivers of Labour Earnings Inequality - An Analysis Based on Conditional and Unconditional Quantile Regressions”, OECD Economics Department Working Papers, No. The Drivers of Labour Earnings Inequality - An Analysis Based on Conditional and Unconditional Quantile Regressions’, OECD Economics Department Working Papers, No. However, they may also increase inequality by lowering employment.26 The negative employment effects of unemployment benefits are supported both by existing empirical studies (e.g. Nunziata, 2002, Bassanini and Duval, 2006, Murtin etal.,