How Large are Firing Costs? A Cross-Country Study

Wesselbaum, Dennis (2014): How Large are Firing Costs? A Cross-Country Study.

Abstract

This paper provides evidence for the size of firing costs for eight countries. In contrast to the existing literature, we use the optimality conditions obtained in a search and matching model to find a reduced form equation for firing costs. We find that our estimates are slightly larger compared with other studies. Finally, we offer three explanations for the observed cross-country patterns.

• Item Type: MPRA Paper
• Language: English
• Keywords: Employment protection, Firing costs, Optimality conditions.
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J63 - Turnover ; Vacancies ; Layoffs

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