and Galí (2006, 2008) New-Keynesian model of inflation and unemployment, where labor market frictions due to costs of … alternative values of hiring costs as a percentage of GDP. Under low hiring costs - a typical part of the U.S. calibration - for …). However, we find that the region of indeterminacy and E-instability in the policy space increases with the hiring costs. So …

macroeconomic volatilities. In our subsequent empirical estimations, we find that higher labor turnover costs have a statistically … ; macroeconomic volatility ; monetary policy ; firing costs ; unemployment benefits ; replacement rate …

introduction of labor turnover costs (such as hiring and firing costs). Assuming that it is costly to hire and fire workers implies …. -- Monetary persistence ; labor market ; hiring and firing costs …

This paper provides a survey of the recent literature about firing costs and discusses the transmission channels of … firing costs in a partial equilibrium context. In addition, we expand our analysis two types of firing costs in a New …-respecting the bonding critique. We find that the two types of firing costs do not show significant differences. However, respecting …

Empirical evidence indicates that lay-off costs consist of two elements, namely firing costs and severance payments …. This paper investigates business cycle and steady state effects of firing costs and severance payments and discusses the … differences. We find that severance payments imply a lower volatility of key labor market variables compared with firing costs …

This paper introduces productivity dependent firing costs in an endogenous separation New Keynesian model. By strictly … respecting the bonding critique, we show that firing costs tend to increase the performance of the model along the labor market … high - values of the firing costs to generate the Beveridge curve while on the other hand we are not able to find this …

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. -- Optimal monetary policy ; hiring and firing costs ; labor market frictions ; policy trade-off …

This paper introduces productivity-dependent firing costs into an otherwise standard endogenous separations matching … firing costs vary across workers. We show that the model with firing costs outperformes the model without firing costs and …