Sunk firing costs shelter employment and this effect is typically amplified by uncertainty due to an option value of … waiting. Thus, if sunk firing costs are high, e.g. due to a employment protection legislation, and if recession related losses …. -- recession ; employment ; sunk firing costs ; uncertainty ; employment subsidy …

We study short- and long-term wage effects of two important elements of non-wage labour costs: firing costs and payroll …, which predicts an ambiguous effect on wages: firing costs are expected to increase wages, because they increase the … for the endogeneity of the treatment status, suggest that decreased firing costs and payroll taxes have a positive overall …

, to keep the relative tax burden per worker constant, has a wage moderating and a positive effect on employment and …

relative tax burden per worker constant, has a wage moderating and a positive effect on employment and negative effect on …