On-the-Job Learning, Firing Costs and Employment
A BEJEAP Contributions article.
Abstract
This paper explores the influence of on-the-job learning on the employment effect of firing costs. In the absence of on-the-job learning, the theoretical literature shows that firing costs may increase average employment (over the booms and recessions of the business cycle). We show that the existence of on-the-job learning weakens this effect. In fact, when the amount of on-the-job learning is sufficiently large, a rise in firing costs tends to reduce average employment.Submitted: November 24, 2003 · Accepted: February 19, 2005 · Published: April 4, 2005
Originally published in Contributions to Economic Analysis & Policy.
Recommended Citation
Díaz-Vázquez, Pilar; Snower, Dennis J.; and Arjona-Béjar, Luis E.
(2005)
"On-the-Job Learning, Firing Costs and Employment,"
Contributions to Economic Analysis & Policy:
Vol. 4
:
Iss.
1, Article 2.
Available at: http://www.bepress.com/bejeap/contributions/vol4/iss1/art2
