Employment Flows, Capital Mobility, and Policy Analysis
This article extends Hopenhayn and Rogerson's analysis of firing taxes by introducing a flexible form of capital and considering transitionary dynamics. The article finds that capital is not important for understanding the long run and welfare effects of firing taxes. However, capital is crucial for determining the short run consequences of eliminating this type of policy.
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Volume (Year): 42 (2001)
Issue (Month): 3 (August)
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- Fernando Alvarez & Marcelo Veracierto, 1998. "Search, self-insurance and job-security provisions," Working Paper Series WP-98-2, Federal Reserve Bank of Chicago. Full references (including those not matched with items on IDEAS)
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