scholarly journals Firing Costs and Flexibility: Evidence from Firms' Employment Responses to Shocks in India

2011 ◽  
Author(s):  
Achyuta R. Adhvaryu ◽  
Amalavoyal Chari ◽  
Siddharth Sharma
Keyword(s):  
Firing Costs

scholarly journals Firing Costs and Job Loss: The Case of the Italian Jobs Act

2021 ◽  
Author(s):  
Claudia Pigini ◽  
Stefano Staffolani
Keyword(s):  
Labour Market ◽  
Survival Probability ◽  
Job Loss ◽  
Recruitment Strategy ◽  
Firing Costs ◽  
Theoretical Predictions ◽  
Recent Reform ◽  
Permanent Workers ◽  
Jobs Act

AbstractA recent reform in the Italian labour market has modified the permanent contract by reducing firing costs. Using a discontinuity in the application of the reform, we evaluate its effect on the probability of being still employed about three and a half years later. In contrast with theoretical predictions, we find that the job survival probability is not smaller for the treated and even significantly larger in some cases. We investigate the composition of permanent workers hired after the reform and we find evidence of treated firms changing their recruitment strategy in favour of potentially more productive workers.

Firing costs and stigma: A theoretical analysis and evidence from microdata

2001 ◽  
Vol 45 (10) ◽  
pp. 1877-1906 ◽  
Author(s):  
Patrizia Canziani ◽  
Barbara Petrongolo
Keyword(s):  
Theoretical Analysis ◽  
Firing Costs

On the welfare implications of firing costs

2003 ◽  
Vol 19 (4) ◽  
pp. 759-775 ◽  
Author(s):  
Alison L. Booth ◽  
Gylfi Zoega
Keyword(s):  
Firing Costs ◽  
Welfare Implications

scholarly journals Firing costs in a business cycle model with endogenous separations

2015 ◽  
Vol 42 (3) ◽  
pp. 499-518
Author(s):  
Dennis Wesselbaum
Keyword(s):  
Business Cycle ◽  
Empirical Evidence ◽  
Employment Protection ◽  
Cycle Model ◽  
Beveridge Curve ◽  
Flow Rates ◽  
Content Type ◽  
Firing Costs ◽  
Cross Country ◽  
Business Cycle Model

Purpose – The purpose of this paper is to introduce productivity-dependent firing costs into an otherwise standard endogenous separations matching model. The authors suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. The authors show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, the authors present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates. Design/methodology/approach – The authors begin the analysis at the intersection of labor and product markets. For this purpose, the authors derive a real business cycle model with search and matching frictions and endogenous separations. The authors enrich this set-up by introducing productivity-dependent firing costs. Findings – The authors show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, the authors present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates. Originality/value – This paper introduces productivity-dependent firing costs into an otherwise standard endogenous separations matching model. The authors suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. The authors show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, the authors present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates.

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