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The potentially adverse labor market effects of severance pay mandates are a continuing source of policy concern. In a seminal study, Lazear (1990) found that contract avoidance of severance pay firin...
This paper looks at the trade off between investment incentives and exit costs for the location of foreign direct investment (FDI). This issue does not appear to have been tackled in much detail in th...
In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment are much lower in Europe compared to North America, while employment-to-employmen...
A matching model in the line of Mortensen and Pissarides (1994) is augmented with a low- skill labor market and firing costs. It is shown that even with flexible wages unemployment is higher among the...

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