Layoff Costs and Efficiency with Asymmetric Information

Wage determination under asymmetric information generates ine¢ ciencies due to excess turnover. Severance pay and layo¤ taxes can improve e¢ ciency. We show that inefficient separations can even be fully removed with xed separation taxes in the case where therelevant private information is exponentially distributed.

MoreLess

Year of publication:	2009-09-04
Authors:	Delacroix, Alain ; Wasmer, Etienne
Institutions:	Department of Economics, Sciences économiques

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	Sciences Po Economics Discussion Papers.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010756847