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How Large Are Firing Costs? A Cross-Country Study
Applied Economics Quarterly, Vol. 66 (2020), Iss. 4 : pp. 319–328
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Dennis Wesselbaum, University of Otago, Department of Economics. P.O. Box 56, Dunedin 9054, New Zealand.
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Abstract
This paper provides evidence for the size and the cyclicality of firing costs for the United States and Germany. 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 and document sizable time-variation in firing costs.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Dennis Wesselbaum: How Large Are Firing Costs? A Cross-Country Study | 1 | ||
| Abstract | 1 | ||
| 1. Introduction | 1 | ||
| 2. Reduced Form Equation | 2 | ||
| 3. Data | 4 | ||
| 4. Results | 5 | ||
| 4.1 Firing Costs | 5 | ||
| 4.2 Cyclical Behavior | 6 | ||
| 5. Final Remarks | 7 | ||
| References | 8 | ||
| Appendix | 9 |