Search Results

SORT BY: PREVIOUS / NEXT
Keywords:Hiring costs 

Working Paper
The State Dependent Effectiveness of Hiring Subsidies

The responsiveness of job creation to shocks is procyclical, while the responsiveness of job destruction is countercyclical. This new finding can be explained by a heterogeneous-firm model in which hiring costs lead to lumpy employment adjustment. The model predicts that policies that aim to stimulate employment by encouraging job creation, such as hiring subsidies, are significantly less effective in recessions: These are times when few firms are near their hiring threshold and many firms are near their firing threshold. Policies that target the job destruction margin, such as employment ...
International Finance Discussion Papers , Paper 1290

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E24 1 items

E32 1 items

E63 1 items

PREVIOUS / NEXT