Strong Hysteresis due to Age Effects
Strong hysteresis in the labour market (see Cross, 1995) requires workers to be heterogeneous in terms of the cost of hiring and firing. We show how such heterogeneity arises naturally in labour markets due to differences in workers’ age by showing that both the hiring and the firing thresholds for productivity are age dependent. The presence of strong hysteresis does not for this reason depend on ad-hoc differences in the cost of hiring and firing workers.
|Date of creation:||Feb 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (01382) 344375
Fax: (01382) 344691
Web page: http://www.dundee.ac.uk/econman/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chen, Yu-Fu & Zoega, Gylfi, 2010.
"An essay on the generational effect of employment protection,"
Mathematical Social Sciences,
Elsevier, vol. 59(3), pages 349-359, May.
- Yu-Fu Chen & Gylfi Zoega, 2009. "An essay on the generational effect of employment protection," Birkbeck Working Papers in Economics and Finance 0915, Birkbeck, Department of Economics, Mathematics & Statistics.
- Assar Lindbeck & Dennis J. Snower, 1989. "The Insider-Outsider Theory of Employment and Unemployment," MIT Press Books, The MIT Press, edition 1, volume 1, number 026262074x, June.
- Amable, Bruno & Henry J & Lordon F & Topol R, 1992. "Hysteresis : what it is and what it is not ?," CEPREMAP Working Papers (Couverture Orange) 9216, CEPREMAP.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780198284345, March.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, March.
- Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, vol. 57(3), pages 381-402, July.
- Rod Cross & Michael Grinfeld & Laura Piscitelli, 1999. "Hysteresis in Economic Systems," Computing in Economics and Finance 1999 723, Society for Computational Economics.
- Piscitelli, Laura, et al, 2000.
"A Test for Strong Hysteresis,"
Society for Computational Economics, vol. 15(1-2), pages 59-78, April.
When requesting a correction, please mention this item's handle: RePEc:dun:dpaper:230. 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: (Andrzej Kwiatkowski)
If references are entirely missing, you can add them using this form.