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How Large are Firing Costs? A Cross-Country Study

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  • Wesselbaum, Dennis

Abstract

This paper provides evidence for the size of firing costs for eight countries. In contrast to the existing literature, we use the optimality conditions obtained in a search and matching model to find a reduced form equation for firing costs. We find that our estimates are slightly larger compared with other studies. Finally, we offer three explanations for the observed cross-country patterns.

Suggested Citation

  • Wesselbaum, Dennis, 2014. "How Large are Firing Costs? A Cross-Country Study," MPRA Paper 58762, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58762
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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