Do Labor Market Conditions Affect the Strictness of Employment Protection Legislation?

Saltari EnricoTilli Riccardo
CEIS Working Papers
We provide a theoretical microfoundation for the inverse relationship between firing costs and labor market tightness and evaluate the effects of this relationship on labor market performance in a matching model à la Mortensen and Pissarides (1994). Resul
Number: 240
Date: Friday 01 September 2006
Revision Date: Friday 01 September 2006