The employment effects of severance payments with wage rigidities

• 成果类型: Article
• 署名作者: Garibaldi, P; Violante, GL
• 署名单位: New York University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2005.01020.x
• 发表日期: 2005
• 页码: 799-832
• 关键词: firing costs; job security; unemployment; institutions; ECONOMY

摘要

Firing costs have two separate dimensions: a transfer from the firm to the laid-off worker and a tax paid outside the firm-worker pair. To avoid the 'bonding critique' most of the existing literature implicitly assumes that, in the presence of wage rigidity, transfers have the same real effects as taxes. This paper shows that this presumption is in general misplaced, especially so when the degree of wage rigidity is endogenous. The predictions of our theory find empirical support in a panel data-set of OECD countries.