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 … and inflation volatility ; labor turnover costs ; unemployment benefits ; unemployment ; eurozone …

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

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 …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are … heterogeneous variations in the characteristics of workers and jobs, and firms face adjustment costs in responding to these … empirical regularities that the conventional matching model cannot. -- Matching ; incentives ; adjustment costs ; unemployment …