Buhai, Sebastian; Portela, Miguel; Teulings, Coen N.; … - 2008
consider the effects of Employment Protection Legislation and risk aversion. -- Irreversible investment ; efficient bargaining … firm with stochastic product demand and hiring cost (= irreversible specific investments). There is wage bargaining between … a worker and its firm. Separations (quits or layoffs) obey the LIFO rule and bargaining is efficient (a zero surplus at …