heterogeneous firing costs. The theoretical model predicts that the firm displaces workers with low firing costs, low expected …

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 …