Under symmetric information, a job protection law which says that a principal who has hired an agent today must also employ him tomorrow can only reduce the two parties' total surplus. The law restricts the principal's possibilities to maximize her profit, which equals the total surplus, because...

Under symmetric information, a job protection law which says that a principal who has hired an agent today must also employ him tomorrow can only reduce the two parties' total surplus. The law restricts the principal's possibilities to maximize her profit, which equals the total surplus, because...

The Employment Protection Legislation (EPL) has been at the heart of many analyses with regard to its macroeconomic impact on the labor market outcomes. However, some more recent literature studies the effects of the EPL, specially concerning the individual dismissal, on the behavior of economic...

In this paper we study the allocative (in)efficiency of employment protection in relation to firing costs, in a general equilibrium model with labor market frictions. The optimal firing costs depend on the level of unemployment benefits and the degree of centralized wage bargaining, two features...

This paper analyzes a labor market, where firms offer workers incentive contracts and make decisions about irreversible capital investments. The state authority regulates the institutional framework by choosing the level of unemployment benefits and the workers' bargaining power. Our results...

Korean Abstract: 본 연구에서는 OECD 선진 21개국(우리나라 포함)의 연령층별 실업률 및 노 동시장 제도 및 정책 변수를 이용하여, 청년실업 이력현상(hysteresis)의 존재가능성과 그 크기를 시계열 및 국가패널 자료로 분석하였다....