Labor Adjustment: Disentangling Firing and Mobility Costs

DSpace/Manakin Repository

Show simple item record

dc.contributor.author GUISO, Luigi
dc.contributor.author SAPIENZA, Paola
dc.contributor.author ZINGALES, Luigi
dc.date.accessioned 2007-11-02T11:10:14Z
dc.date.available 2007-11-02T11:10:14Z
dc.date.issued 2007
dc.identifier.issn 1725-6704
dc.identifier.uri http://hdl.handle.net/1814/7498
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.language.iso en en
dc.publisher European University Institute
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2007/44 en
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|
eui.subscribe.skip true


Files in this item

This item appears in the following Collection(s)

Show simple item record