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

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 … employment alongside inflation. -- Optimal monetary policy ; hiring and firing costs ; labor market frictions ; policy trade-off …

macroeconomic volatilities. In our subsequent empirical estimations, we find that higher labor turnover costs have a statistically … and inflation volatility ; labor turnover costs ; unemployment benefits ; unemployment ; eurozone …

and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there … growth is large, firing costs affect mainly the firing decision. Then, as a result, average employment is increased. Our …

's labor turnover costs (e.g. costs of hiring, training, and firing). In this context, labor turnover costs not only influence …