@techreport{Chen1999Firing,
abstract = {In this paper we analyse the employment implications of firing restrictions. We find that when a recession is expected and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there is a negative effect on average employment. When, on the other hand, a boom is expected and the rate of productivity growth is large, firing costs affect mainly the firing decision. Then, as a result, average employment is increased. Our analysis suggests that while firing restrictions might have
stimulated employment and reduced unemployment in Europe in the first two decades following World War II - when large supply shocks were absent and the average rate of growth was high - these same restrictions may have had the opposite effects in the 1970s and 1980s, when significant negative supply shocks occured.},
address = {Hamburg},
author = {Yu-Fu Chen and Dennis J. Snower and Zoega Gylfi},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E32; J24; J54; J23; 330; firing restrictions; stochastic demand; hiring and firing; real options; K\"{u}ndigungsschutz; Arbeitsnachfrage; Kosten; Konjunktur; Theorie},
language = {eng},
number = {78},
publisher = {HWWA-Institut f\"{u}r Wirtschaftsforschung},
title = {Firing Costs: Eurosclerosis or Eurosuccesses?},
type = {HWWA-Diskussionspapier},
url = {http://hdl.handle.net/10419/2309},
year = {1999}
}
