Dundee Discussion Papers in Economics 096: Firing the old or the young: a non-perpetual real options analysis

Yu-Fu Chen; Gylfi Zoega

Dundee Discussion Papers in Economics 096: Firing the old or the young: a non-perpetual real options analysis

Yu-Fu Chen
, Gylfi Zoega

Research output: Working paper/Preprint › Discussion paper

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Abstract

We model a firm’s choice as to the age composition of dismissed workers for different assumptions about the level of firing costs. We find that with high firing costs (not to mention rising ones), firms will be inclined to fire younger workers while with low costs of firing, the older workers are at risk. Since with high firing costs old workers are better protected against layoffs, an ageing population has the effect of making employment-protection legislation more stringent.

Original language	English
Publisher	University of Dundee
Publication status	Published - 1999

Publication series

Name	Dundee Discussion Papers in Economics
Publisher	University of Dundee
No.	96
ISSN (Print)	1473-236X

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Age-structure
Tenure
Firing decisions

Access to Document

DDPE_096.pdf

Cite this

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AB - We model a firm’s choice as to the age composition of dismissed workers for different assumptions about the level of firing costs. We find that with high firing costs (not to mention rising ones), firms will be inclined to fire younger workers while with low costs of firing, the older workers are at risk. Since with high firing costs old workers are better protected against layoffs, an ageing population has the effect of making employment-protection legislation more stringent.

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Dundee Discussion Papers in Economics 096: Firing the old or the young: a non-perpetual real options analysis

Abstract

Publication series

UN SDGs

Keywords

Access to Document

Fingerprint

Cite this