Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33494
Authors: 
Messina, Julián
Vallanti, Giovanna
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2045
Abstract: 
We exploit homogeneous firm level data of manufacturing and non-manufacturing sectors to study the impact of firing restrictions on job flow dynamics across 14 European countries. We find that more stringent firing laws dampen the response of job destruction to the cycle, thus making job turnover less counter-cyclical. Moreover, the impact of firing costs on job creation and job destruction varies across sectors, depending on sector-specific trend growth. Our findings clearly suggest that such costs are more important in contracting than in growing sectors.
Subjects: 
gross job flows
Europe
business cycle
firing costs
JEL: 
J23
J63
J68
Document Type: 
Working Paper

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