Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/130550 
Year of Publication: 
2010
Series/Report no.: 
Kiel Working Paper No. 1550 [rev.]
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
This paper introduces productivity-dependent firing costs into an otherwise standard endogenous separations matching model. We suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. We show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, we present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates.
Subjects: 
Beveridge Curve
Endogenous Separations
Firing Costs
Second Moments of Job Flows
JEL: 
E24
E32
J64
older Version: 
Document Type: 
Working Paper

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