|
EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Economists Online >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/2309
|
| | |
| Title: | | Firing Costs: Eurosclerosis or Eurosuccesses?  |
| Authors: | | Chen, Yu-Fu Snower, Dennis J. Gylfi, Zoega |
| Issue Date: | | 1999 |
| Series/Report no.: | | HWWA-Diskussionspapier 78 |
| 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. |
| Subjects: | | firing restrictions stochastic demand hiring and firing real options |
| JEL: | | E32 J24 J54 J23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Economists Online HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv
|
| Files in This Item:
| |
| File |
Description |
Size | Format |
| 78.pdf | | 132.71 kB | Adobe PDF |
|
| No. of Downloads:
| |
Counter Stats
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/2309
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|