Merkl, Christian (contributor); … - 2008
due to a drop in the replacement rate or firing costs, leading to a fall in wages, (ii) hiring subsidies, and (iii …) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps … in the replacement rate or firing costs, leading to a fall in wages,
(ii) hiring subsidies, and (iii) training subsidies …