Caggese, Andrea; Guler, Ozan; Mariathasan, Mike; … - 2022
This paper investigates the effect of firing costs on total factor productivity (TFP) and resource allocation …. Exploiting heterogeneous changes in firing costs across employee types in Belgium, we find that increasing firing costs reduce … firm-level TFP. Firms facing a net increase in firing costs reduce hiring and firing, increase hours worked per employee …