increase both youth and old age unemployment. This happens because unions react strategically, and respond to higher firing … participate in the labour market both when young and old. Each generation of workers is represented by its own union. Unions set … unemployment and decrease old age unemployment. However, once we take the wage response into account, we find that firing costs …

increase both youth and old age unemployment. This happens because unions react strategically, and respond to higher firing … participate in the labour market both when young and old. Each generation of workers is represented by its own union. Unions set … unemployment and decrease old age unemployment. However, once we take the wage response into account, we find that firing costs …

uncertain productivity; thus youth unemployment is higher …

composition of unemployment (rationing versus frictional) influences the way firing costs affect employment. The model suggests … that firing costs lead to a strong adverse employment effect if unemployment is mainly caused by job rationing, whereas in … indicate that for two of the three wrongful-dismissal laws investigated, unemployment composition is crucial for the induced …

This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows …. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine … the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to …