The Costs of Hiring and Separations / John M. Abowd, Francis Kramarz.

Format:

Book

Author/Creator:

Abowd, John M.

Contributor:

National Bureau of Economic Research.

Kramarz, Francis.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6110.

NBER working paper series no. w6110

Language:

English

Subjects (All):

Labor costs.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1997.

Cambridge : National Bureau of Economic Research, 1997.

Summary:

In this article, we estimate the costs of hiring, separation, and retirement of employees for a representative sample of French establishments in 1992. The estimates are computed using data from three sources: the Wage Structure Survey (ESS), the Workforce Movement Questionnaire (DMMO), and the Occupational Structure Survey (ESE). We show that the estimated costs are generally asymmetric (hiring is cheaper than terminations), increasing, and concave functions of the number of entries or exits (either retirements or terminations). There is a fixed component to each of these costs that is related to the structure of the firm's personnel department. Our estimates imply that firms should not adjust gradually to the desired level of employment.

Notes:

Print version record

July 1997.