Garibaldi, P. (1995) Job flow dynamics and firing restrictions. CEPDP (256). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
Full text not available from this repository.Abstract
The purpose of this paper is to rationalize cross country differences in cyclical behaviour of job creation and destruction. In a stochastic dynamic search model with endogenous job separation it is shown that the relative volatility of job creation and destruction depends crucially upon the arrival rate of exogenous firing permissions. The tighter the firing restrictions, the less volatile is job destruction and the higher the correlation between job reallocation and net employment changes. Furthermore, as firing restrictions increase, the average level of job reallocation falls while equilibrium unemployment is approximately constant. These results are in line with the cross country evidence on job reallocation and unemployment.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 1995 P.Garibaldi |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 13 Aug 2008 09:08 |
| Last Modified: | 15 Sep 2023 22:42 |
| URI: | http://eprints.lse.ac.uk/id/eprint/20705 |
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