dismissal costs. We exploit the fact that costs for unjust dismissals in Italy increased for firms below 15 employees relative …Labor market regulations have often been blamed for high and persistent unemployment in Europe, but evidence on their … to bigger firms after 1990. We find that the increase in dismissal costs after 1990 decreased accessions and separations …

Product market regulation and employment protection are highly correlated across OECD countries. Using an augmented … protect jobs relatively more. Product market regulation increases the scope for employment protection because firms can bear … the cost of employment protection more easily and still break even. Moreover, product market regulation decreases …

This paper analyzes the effect of labor and product market regulation in a dynamic stochastic equilibrium with search …-and-firing (intensive) margin. We characterize analytically how both margins depend on regulation before we calibrate the model to the US … economy. We find that firing costs matter most for the intensive margin. Fixed or set-up costs in the product market instead …

This paper analyzes the effect of labor and product market regulation in a dynamic stochastic equilibrium with search …-and-firing (intensive) margin. We characterize analytically how both margins depend on regulation before we calibrate the model to the US … economy. We find that firing costs matter most for the intensive margin. Fixed or set-up costs in the product market instead …