Job flow dynamics and firing restrictions: evidence from Europe

Julian Messina and Giovanna Vallanti

No 602, Working Paper Series from European Central Bank

Abstract: We exploit homogeneous firm level data of manufacturing and non-manufacturing sectors to study the impact of firing restrictions on job flow dynamics across 14 European countries. We find that more stringent firing laws dampen the response of job destruction to the cycle, thus making job turnover less counter-cyclical. Moreover, the impact of firing costs on job creation and job destruction varies across sectors, depending on sector-specific trend growth. Our findings clearly suggest that such costs are more important in contracting than in growing sectors. JEL Classification: J23, J63, J68

Keywords: business cycle; Europe; Firing Costs; Gross Job Flows (search for similar items in EconPapers)
Date: 2006-04
Note: 1267758
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Job Flow Dynamics and Firing Restrictions: Evidence from Europe (2007)
Working Paper: Job Flow Dynamics and Firing Restrictions: Evidence from Europe (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2006602

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