. To fill this gap, we build a general equilibrium model with heterogeneous agents and firing costs in the tradition of …

We assess the quantitative impact of firing costs on aggregate total factor productivity (TFP) in a dynamic general …-equilibrium framework where the distribution of establishment-level productivity is not invariant to the policy. Firing costs not only … losses. Firing costs equivalent to 5 year's wages imply a drop in TFP of more than 20 percent. Factor misallocation accounts …

dynamic theory of plant-level labor demand that we develop. This model speaks clearly on one issue: firing costs drive a wedge …-1996 to look for real effects induced by two significant increases in the costs of dismissing employees. Similar to previous … firing costs. While we find no evidence that gaps increase for inputs that are not directly affected by firing costs, we find …