This paper explores the influence of on-the-job training on the employment effect of firing costs. It shows that on …-the-job training (generating firm specific skills) causes firing costs to have a contractionary influence on average employment (over …

's labor turnover costs (e.g. costs of hiring, training, and firing). In this context, labor turnover costs not only influence … the bargaining process itself. This approach leads to a new theory of wage determination. …

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to …

macroeconomic volatilities. In our subsequent empirical estimations, we find that higher labor turnover costs have a statistically … theory. While labor market institutions have a large effect on output volatility, they do not seem to have much of an effect …

introduction of labor turnover costs (such as hiring and firing costs). Assuming that it is costly to hire and fire workers implies …

This article is an idiosyncratic survey of the insider-outsider theory, describing the vision underlying the theory … been dead-ends and red herrings in past research. The first section deals with the theory, concerning how labor turnover … costs influence insider wages and outsiders? opportunities and how these costs affect employment and unemployment. We also …

counterveiling fall in reservation wages, leaving the present value of wage costs unchanged. Our analysis contradicts this …