Job flow dynamics and firing restrictions - evidence from Europe
Messina, Julián and Vallanti, Giovanna (2006) Job flow dynamics and firing restrictions - evidence from Europe. [Working Paper]. European Central Bank, Frankfurt am Main, Germany. p. 39. Working Paper Series (No. 602).
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Official URL: http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp602.p...
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.
|Item Type:||Report / Paper (Working Paper)|
|Research documents and activity classification:||Working Papers > Non-Refereed Working Papers / of national relevance only|
|Divisions:||Department of Business and Management|
|Additional Information:||The paper has been published in "Economic Journal", Vol. 117, Pages 279-301, June 2007.|
|Uncontrolled Keywords:||Gross job flows; Europe; business cycle; firing costs.|
|MIUR Scientific Area:||Area 13 - Economics and Statistics > SECS-P/01 Political Economy|
|Deposited By:||Maria Teresa Nistico|
|Deposited On:||21 Dec 2010 10:00|
|Last Modified:||21 Dec 2010 10:00|
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