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heterogeneous firing costs. The theoretical model predicts that the firm displaces workers with low firing costs, low expected …
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Economists have concerns about the firing cost implications of mandated severance plans. Analysis reveals that predicted severance plan consequences depend critically on the precise structure of the plan. Whether governments mandate (i) severance insurance plans or (ii) severance savings plans...
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Job displacement insurance typically includes both unemployment benefits and lump-sum severance pay, and each has provoked policy concerns. Unemployment insurance concerns have centered on distorted job search/offer acceptance decisions by the worker, severance-induced firing cost concerns on...
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Job-to-job turnover provides a way for employers to escape statutory firing costs, as unprofitable workers may … willfully quit their job on receiving an outside offer, thus sparing their incumbent employer the firing costs. Furthermore … employed job search, our model explains why higher firing costs intensify job-to-job turnover at the expense of transitions out …
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likely to claim their rights, which may create a gap between the costs for employers of hiring a native relative to hiring an …
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In this paper we conduct an analysis of the effects of firing costs in models that consider simultaneously worker … parametrically. There is imperfect information about worker productivity. We find that at given wages firing costs increase youth … unemployment and decrease old age unemployment. However, once we take the wage response into account, we find that firing costs …
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This paper analyzes the effect of firing costs on aggregate productivity growth. For this purpose, a model of … firms, and is sustained as entrants imitate the best incumbents. In this framework, firing costs not only induce … misallocation of labor, but also affect growth by affecting firms' exit decisions. Importantly, charging firing costs only to …
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