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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/2227| Title: | Firing costs : eurosclerosis or eurosuccesses? |
| Keywords: | E32 J23 J24 J54 ddc:330 firing restrictions stochastic demand hiring and firing real options Kündigungsschutz Arbeitsnachfrage Kosten Konjunktur Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Department of Economic Studies, University of Dundee Dundee |
| Description: | 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 occurred. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/2227 |
| Other Identifiers: | http://hdl.handle.net/10419/2227 ppn:265420784 |
| Appears in Collections: | EconStor |
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