's labor turnover costs (e.g. costs of hiring, training, and firing). In this context, labor turnover costs not only influence …

and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there … growth is large, firing costs affect mainly the firing decision. Then, as a result, average employment is increased. Our …

model, incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to … the standard search and matching model. -- monetary persistence ; labor market ; hiring and firing costs …