Marc Blatter (Institute of Economics, University of Berne) Samuel Muehlemann () (Institute of Economics, University of Berne) Samuel Schenker (Institute of Economics, University of Berne)
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The structure of labor adjustment costs determines how firms adjust their workforce over time. However, the shape of these costs has been subject of a controversial discussion in the literature. In this paper we directly estimate the firm’s hiring costs based on detailed establishment-level data. Our results provide strong evidence in favor of increasing marginal hiring costs.
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