Wesselbaum, Dennis (2009): Firing Tax vs. Severance Payment - An Unequal Comparison.
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The effects of firing costs crucially depend on the extend to which the additional costs can be shifted to the worker, which refers to the so called "bonding critique". In the recent literature about firing costs, these costs are assumed to be a wasteful tax, such that they can not be shifted to the worker. In this paper, we analyze the eects from respecting and non-respecting the bonding critique. We consistently show, that firing costs have to be introduced in a different way as severance payments. If they are introduced in a similar way, results are likely to be different, in particular for fluctuations of vacancies, unemployment and wages.
|Item Type:||MPRA Paper|
|Original Title:||Firing Tax vs. Severance Payment - An Unequal Comparison|
|Keywords:||Bonding Critique, Endogenous Separations, Firing Costs, Severance Payments|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
|Depositing User:||Dennis Wesselbaum|
|Date Deposited:||04. Oct 2009 13:45|
|Last Modified:||18. Feb 2013 16:23|
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