How Large are Firing Costs? A Cross-Country Study

This paper provides evidence for the size of firing costs for eight countries. In contrast to the existing literature, we use the optimality conditions obtained in a search and matching model to find a reduced form equation for firing costs. We find that our estimates are slightly larger compared with other studies. Finally, we offer three explanations for the observed cross-country patterns.

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Year of publication:	2014-06-23
Authors:	Wesselbaum, Dennis
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Employment protection \| Firing costs \| Optimality conditions

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	C22 - Time-Series Models ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J63 - Turnover; Vacancies; Layoffs
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011108886