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...

Perhaps it does. We propose a model in which workers with little education or in the tails of the age distribution the inexperienced and the old have more chance of job failure (mismatch). Recruits' average education should then increase and the standard deviation of starting age decrease when...

Using a unique sample of new Ph.D. economists in 1987 and 1997, we examine how job seekers and their employers alter their search strategies in strong versus weak markets. The 1987 academic market was strong while the 1997 market was much weaker. A multimarket theory of optimal search suggests...