Chen, Yu-Fu; Snower, Dennis J.; Gylfi Zoega; Funke, Michael - HWWA Workshop on Uncertainty and Factor Demands <1999, …; … - 1999
In this paper we analyse the employment implications of firing restrictions. We find that when a recession is expected and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there is a negative effect on average employment. When, on...
