Koeniger, Winfried; Prat, Julien - Institute for the Study of Labor (IZA) - 2006
This paper analyzes the effect of labor and product market regulation in a dynamic stochastic equilibrium with search …-and-firing (intensive) margin. We characterize analytically how both margins depend on regulation before we calibrate the model to the US … through firm selection. Finally, the opposite effect of product and labor market regulation on job turnover rationalizes the …