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Severance Pay Mandates: Firing Costs, Hiring Costs, and Firm Avoidance Behaviors
severance pay firing costs hiring costs layoff employment insurance savings moral hazard
2012/10/25
The potentially adverse labor market effects of severance pay mandates are a continuing source of policy concern. In a seminal study, Lazear (1990) found that contract avoidance of severance pay firin...
Fancy a Stay at the 'Hotel California'? Foreign Direct Investment, Taxation and Firing Costs
foreign direct investment exit costs firing costs investment incentives taxation
2013/10/25
This paper looks at the trade off between investment incentives and exit costs for the location of foreign direct investment (FDI). This issue does not appear to have been tackled in much detail in th...
Hiring and Firing Costs, Adverse Selection and Long-term Unemployment
Adverse selection turnover costs unemployment worker flows discrimination
2013/10/18
In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment are much lower in Europe compared to North America, while employment-to-employmen...
Different Skill Levels and Firing Costs in a Matching Model with Uncertainty - An Extension of Mortensen and Pissarides (1994)
Firing costs low-skill unemployment dual labor market vacancies
2013/10/18
A matching model in the line of Mortensen and Pissarides (1994) is augmented with a low- skill labor market and firing costs. It is shown that even with flexible wages unemployment is higher among the...