On-the-Job Learning, Firing Costs and Employment

Díaz-Vázquez Pilar (), Snower Dennis J () and Arjona-Béjar Luis E ()
Additional contact information
Díaz-Vázquez Pilar: Universidad de Santiago de Compostela, Spain
Snower Dennis J: Kiel Institute for World Economics, Kiel (Germany), IZA and CEPR
Arjona-Béjar Luis E: Universidad de Santiago de Compostela

The B.E. Journal of Economic Analysis & Policy, 2005, vol. 4, issue 1, 1-27

Abstract: This paper explores the influence of on-the-job learning on the employment effect of firing costs. In the absence of on-the-job learning, the theoretical literature shows that firing costs may increase average employment (over the booms and recessions of the business cycle). We show that the existence of on-the-job learning weakens this effect. In fact, when the amount of on-the-job learning is sufficiently large, a rise in firing costs tends to reduce average employment.

Keywords: Average employment; Firing costs; Severance Payments; On-the-job learning; Insider wage (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2202/1538-0645.1237 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:contributions.4:y:2005:i:1:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.2202/1538-0645.1237

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().