Arbeitspapier

Firing costs in a business cycle model with endogenous separations

to connected objects

This paper introduces productivity-dependent firing costs into an otherwise standard endogenous separations matching model. We suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. We show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, we present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates.

Language: Englisch

Bibliographic citation: Series: Kiel Working Paper ; No. 1550 [rev.]

Classification: Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Unemployment: Models, Duration, Incidence, and Job Search

Subject: Beveridge Curve
Endogenous Separations
Firing Costs
Second Moments of Job Flows
Beveridge-Kurve
Kündigung
Kosten
Produktivität
Neoklassische Synthese
Theorie

Event: Geistige Schöpfung

(who): Wesselbaum, Dennis

Event: Veröffentlichung

(who): Kiel Institute for the World Economy (IfW)

(where): Kiel

(when): 2010

Handle: http://hdl.handle.net/10419/130550

Last update: 10.03.2025, 11:43 AM CET

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Object type

Arbeitspapier

Associated

Wesselbaum, Dennis
Kiel Institute for the World Economy (IfW)

Time of origin

2010

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