The transition to market in Slovenia created labor displacements that were on par or greater than that experienced in North America in the 1980s. A simple theoretical model suggests that factors which raise the probability of layoff should also increase the probability of a quit, predictions...

Sri Lanka's Termination of Employment of Workmen Act (TEWA) requires that firms with 15 or more employees justify layoffs and provide generous severance pay to displaced workers, with smaller firms being exempted. Athough formally subject to TEWA, firms in Export Processing Zones (EPZs) may have...

Many developing countries have tried to increase firm provision of training by providing subsidies funded by taxes proportional to the firm’s wage bill.  These training funds, however, may backfire if the adverse effect of the tax on training incentives outweighs the positive effects of...

Training funds are used to incentivize training in developing countries, but the funds are based on payroll taxes that lower the return to training.  In the absence of training funds, larger, high-wage and more capital intensive firms are the most likely to offer training unless they are...

Sri Lanka's Termination of Employment of Workmen Act (TEWA) requires that firms with 15 or more workers justify layoffs and provide generous severance pay to displaced workers, with smaller firms being exempted. Although formally subject to TEWA, firms in Export Promotion Zones (EPZs) do not...

Using a unique longitudinal data set on all manufacturing firms in Slovenia from 1994-2001, this study analyzes how firm efficiency changed in response to changing competitive pressures associated with the transition to market. Results show that the period was one of atypically rapid growth of...