The labor market effects of employment protection were examined in a study of Germany's employment protection regulations and their impact on employment practices and patterns. The following topics were considered: (1) the question of whether Germany's labor market problems are a result of regulations; (2) employment security as a subject of labor market regulation; (3) labor-economics criticism of employment protection; (4) the labor market effects of employment protection regulations in Germany and in other member countries of the Organisation for Economic Cooperation and Development; and (5) empirical and theoretical contradictions of the law and economics of employment protection. The study concluded that the labor market effects of employment protection regulations are frequently overrated. If the statistical relationship between a low regulation level and high economic growth is disregarded, there is little evidence that regulation strictness has an effect on levels of employment and unemployment. The study's empirical and theoretical findings were said to provide no justification for large-scale deregulation of employment protection legislation. However, several adjustments in economic policy in response to recent changes in Germany's economic structure were recommended. (Three tables of data related to the relationship between growth and the labor market are appended. The bibliography lists 20 references.) (MN)