Munich Personal RePEc Archive

How Large are Firing Costs? A Cross-Country Study

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


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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.

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