Working Paper
Employment flows, capital mobility, and policy analysis
Abstract: This paper extends Hopenhayn and Rogerson's analysis of firing taxes by introducing a flexible form of capital and considering transitionary dynamics. The paper finds that capital is not important for understanding the long run and welfare effects of firing taxes. However, capital is crucial for determining the short run consequences of eliminating this type of policy.
Keywords: Employment (Economic theory); Labor mobility; Labor market; Capital movements;
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File(s): File format is application/pdf http://www.chicagofed.org/digital_assets/publications/working_papers/2000/wp2000_05.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Working Paper Series
Publication Date: 2000
Number: WP-00-5