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Theory predicts that the wage effects of government-mandated severance payments depend on workers' and firms' relative … bargaining power. This paper estimates the effect of employment protection legislation (EPL) on workers' individual wages in a …
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, which predicts an ambiguous effect on wages: firing costs are expected to increase wages, because they increase the … short-term effect on wages – and also on unemployment. We find larger effects for older than for younger workers and for men … on wages takes place during the first year of the reform. Our simulations also show that the increase in wages is mostly …
Persistent link: https://www.econbiz.de/10003958746
, which predicts an ambiguous effect on wages: firing costs are expected to increase wages, because they increase the … short-term effect on wages – and also on unemployment. We find larger effects for older than for younger workers and for men … on wages takes place during the first year of the reform. Our simulations also show that the increase in wages is mostly …
Persistent link: https://www.econbiz.de/10013144396
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In many countries, Employment Protection Legislation (EPL) establishes less strict dismissal procedures for specific groups of workers. This paper builds a simple matching model with heterogeneous workers in order to analyze this feature of EPL. We use the model to analyze the effects of reforms...
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