Advanced Search
MyIDEAS: Login to save this paper or follow this series

How Effective Are Firing Costs?

Contents:

Author Info

  • Yu-Fu Chen
  • Gylfi Zoega

Abstract

This paper derives the effect of state-mandated redundancy payments on a firm's firing decision as a function of the characteristics of its stochastic environment. We both summarize the main determinants of the effectiveness of firing costs using numerical simulations and point out some important considerations in evaluating their significance. In particular, we find that the effect of firing costs is very sensitive to the rate of growth of productivity, the rate of interest, workers' quit rate and the persistence of productivity shocks in addition to the level of uncertainty. The fall in trend productivity growth in the past two decades, accompanied by a rise in real interest rates and a possible increase in the persistence of labour demand shocks should have made employment more sensitive to cyclical downturns.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Birkbeck, Department of Economics, Mathematics & Statistics in its series Archive Discussion Papers with number 9615.

as in new window
Length:
Date of creation: 1996
Date of revision:
Handle: RePEc:bbk:bbkewp:9615

Contact details of provider:
Postal: Malet Street, London WC1E 7HX, UK
Phone: 44-20- 76316429
Fax: 44-20- 76316416
Web page: http://www.ems.bbk.ac.uk/

Order Information:
Email:

Related research

Keywords: Firing costs; productivity growth; persistence of labour demand shocks.;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bbk:bbkewp:9615. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.