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Suppose insiders use their market power to push up their wages, while entrants receive their reservation wages. How …
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In this paper we analyse the employment implications of firing restrictions. We find that when a recession is expected and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there is a negative effect on average employment. When, on...
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We analyze the interaction among important institutional variables in the labor market (firing costs, minimum wages and …
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