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| Author: | Fath, J. Fuest, C. |
| Title: | Experience rating versus employment protection laws in a model where firms monitor workers |
| Journal: | Scandinavian Journal of Economics
2005 : VOL. 107:2, p. 299-313 |
| Index terms: | Efficiency Employment protection Experience Payment systems Unemployment |
| Language: | eng |
| Abstract: | While layoff costs in the US are mostly due to experience-rated unemployment insurance, layoff costs in European labour markets are primarily a consequence of employment laws. The effects of experience rating and employment protection laws on employment and welfare are here compared in a model where unemployment arises due to efficiency wage setting and where labour turnover is inefficiently high. |
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