Labor Adjustment: Disentangling Firing and Mobility Costs

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Show simple item record GUISO, Luigi SAPIENZA, Paola ZINGALES, Luigi 2007-11-02T11:10:14Z 2007-11-02T11:10:14Z 2007
dc.identifier.issn 1725-6704
dc.description.abstract This paper studies the costs of adjusting employment, distinguishing between firms’ firing and workers’ mobility costs. We construct a simple dynamic general equilibrium model of labor demand and supply and show that only the joint response of employment and wages to firm level shocks can discriminate between the two types of costs. We use matched employer-employees data for Italy to estimate the model and find that both types of costs are present, that they are sizeable (in the range of 19,000 euros in total) and that firing costs account for almost 90 percent of total adjustment costs. en
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher European University Institute
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2007/44 en
dc.rights info:eu-repo/semantics/openAccess
dc.subject C33 en
dc.subject D21 en
dc.subject J63 en
dc.subject Adjustment costs en
dc.subject mobility costs en
dc.subject matched employer-employees data en
dc.title Labor Adjustment: Disentangling Firing and Mobility Costs en
dc.type Working Paper en
dc.neeo.contributor GUISO|Luigi|aut|EUI70005
dc.neeo.contributor SAPIENZA|Paola|aut|
dc.neeo.contributor ZINGALES|Luigi|aut|
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