Working Paper: CEPR ID: DP4241
Authors: Pilar Diaz-Vazquez; Dennis Snower
Abstract: This Paper explores the influence of on-the-job training on the employment effect of firing costs. It shows that on-the-job training (generating firm specific skills) causes firing costs to have a contractionary influence on average employment (over the booms and recessions of the business cycle).
Keywords: average employment; firing costs; on-the-job training
JEL Codes: E24; J23; J24; J32; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| on-the-job training (M53) | average employment (J20) |
| firing costs (J32) | average employment (J20) |
| retention of trained workers (J24) | productivity of workforce (J24) |
| productivity of workforce (J24) | average employment (J20) |
| firing costs (J32) | employment in efficiency units (J68) |
| firing costs (J32) | hiring in booms (M51) |