How Large Are Firing Costs? A Cross-Country Study

Dennis Wesselbaum

Applied Economics Quarterly (formerly: Konjunkturpolitik), 2020, vol. 66, issue 4, 319-328

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.

Keywords: Employment protection; Firing costs; Optimality conditions; Turnover (search for similar items in EconPapers)
JEL-codes: C22 J41 J63 (search for similar items in EconPapers)
Date: 2020
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Working Paper: How Large are Firing Costs? A Cross-Country Study (2014)
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