We explore the role of firing costs on labor market outcomes in a search and matching framework with distinct decisions … distinct labor supply margins matters for assessing firing costs. When the intensive margin is kept fixed (as is typically done … in empirical work on firing costs), the dampening effect of firing costs on employment fluctuations is strongly …

This paper explores the influence of on-the-job training on the employment effect of firing costs. It shows that on …-the-job training (generating firm specific skills) causes firing costs to have a contractionary influence on average employment (over …