The interaction of firing costs and firm training
AbstractThis paper analyzes the effects of firing costs in a broader setup than what is usually done, allowing for on-the-job training. By doing so the traditional analysis is extended with respect to two points: On the one hand firing costs clearly increase firm training because worker and firm are less likely to separate. On the other hand, firm training gives firms the opportunity to lower the costs of firing restrictions: After all the value of output of a well-trained worker is less likely to turn negative. Through these two channels firm training is able to diminish the negative effects of firing restrictions usually discussed in the literature.
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Bibliographic InfoArticle provided by Springer in its journal Empirica.
Volume (Year): 36 (2009)
Issue (Month): 3 (August)
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Web page: http://www.springerlink.com/link.asp?id=100261
Firm training; Firing costs; Human capital; E24; J24; J63; J68; M53;
Other versions of this item:
- Wolfgang Lechthaler, 2006. "The Interaction of Firing Costs and Firm Training," University of St. Gallen Department of Economics working paper series 2006 2006-01, Department of Economics, University of St. Gallen.
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
- M53 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Training
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