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It has been claimed that employment protection aggravates problems of adverse selection if workers differ with respect to
their productivity. Analyzing European and US labor law, we identify regulations which work in the opposite direction. Where
employment protection legislation allows dismissals only for good cause and imposes social criteria upon the employer’s selection
process in the event of redundancies, the average productivity of hireable workers is shown to improve. However, we find that
the employers’ reduced freedom of choice more than offsets the productivity increase of newly hired workers and job creation
is deterred by employment protection legislation. Nevertheless, low-productivity workers may favor the introduction of employment
protection provisions.

Islamic finance is an old concept but a very young discipline in the academic sense. It lacks the required extent and level
of theories and models needed for expansion and implementation of the framework provided by Islam. In these circumstances,
unawareness and confusion exist as to the form of the Islamic financial system and instruments. The main difference between
the present economic system and the Islamic economic system is that the later is based on keeping in view certain social objectives
for the benefit of human beings and society. Islam, through its various principles, guides human life and ensures free enterprise
and trade. That is the reason why the conventional banker does not have to be concerned with the moral implications of the
business venture for which money is lent.

This contribution focuses on the formulation of optimal inspection strategies and distinguishes between a targeting approach
and a filtered approach to monitoring. Using a case study for the Flemish textile industry, we investigate the costs and benefits
associated with specific monitoring and enforcement campaigns. The results show the beneficial role such campaigns can play
in an effective and efficient monitoring policy. Thus we provide empirical evidence of the advantages associated with the
filtered monitoring approach and show that filtering is an interesting complement to targeting.