Cervini-Plá, María; Ramos Morilla, Xavier; Silva, … - 2010
We study short- and long-term wage effects of two important elements of non-wage labour costs: firing costs and payroll … taxes. We exploit a reform that introduced substantial reduction in these two provisions for unemployed workers aged less …, which predicts an ambiguous effect on wages: firing costs are expected to increase wages, because they increase the …