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Author: Saint-Paul, Gilles
Resulting in 1 citation.
1. Kugler, Adriana D.
Saint-Paul, Gilles
How Do Firing Costs Affect Worker Flows in a World with Adverse Selection?
Journal of Labor Economics 22,3 (July 2004): 553-585.
Also: http://www.jstor.org/stable/10.1086/383107
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Layoffs; Modeling; Re-employment; Unemployment; Unions

This article provides theoretical and empirical analyses of a firing costs model with adverse selection. Our theory suggests that, as firing costs increase, firms increasingly prefer hiring employed workers, who are less likely to be lemons. Estimates of re-employment probabilities from the National Longitudinal Survey of Youth support this prediction. Unjust-dismissal provisions in U.S. states reduce the re-employment probabilities of unemployed workers relative to employed workers. Consistent with a lemons story, the relative effects of unjust-dismissal provisions on the unemployed are generally smaller for union workers and those who lost their previous jobs due to the end of a contract. [ABSTRACT FROM AUTHOR]
Bibliography Citation
Kugler, Adriana D. and Gilles Saint-Paul. "How Do Firing Costs Affect Worker Flows in a World with Adverse Selection?" Journal of Labor Economics 22,3 (July 2004): 553-585.