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 …

regulations. This paper analyzes the impact of a substantial reduction in dismissal costs introduced by the Colombian Labor Market … Reform of 1990. A theoretical model illustrates the effect of dismissal costs when there is a noncompliant sector. The model … shows the direct effect of a reduction in dismissal costs on increased turnover as well as the second order effects on wages …

this effect by exploiting the time-series variation generated by staggered country-level changes in dismissal laws. We find … that within a country, innovation and economic growth are fostered by stringent laws governing dismissal of employees …

imposed firing costs by outsourcing positions requiring the least firm-specific skills rather than those with the highest … expected termination costs. The empirical analysis indicates that one class of exception, the implied contractual right to … ongoing employment, led to 14 to 22 percent excess temporary help growth in adopting states. Unjust dismissal doctrines did …

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

In this article, we estimate the costs of hiring, separation, and retirement of employees for a representative sample … costs are generally asymmetric (hiring is cheaper than terminations), increasing, and concave functions of the number of … entries or exits (either retirements or terminations). There is a fixed component to each of these costs that is related to …

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 …