Dundee Discussion Papers in Economics 206: Aging and job security

Yu-Fu Chen, Gylfi Zoega

    Research output: Working paperDiscussion 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 when the cost of firing is independent of age, a higher level of firing costs will induce firms to fire their younger workers while lower costs induce them to fire the older ones. A corresponding effect is not found in the age dimension of the hiring decision. It follows that job protection favours more senior workers even when the cost of firing is independent of age and seniority.
    Original languageEnglish
    PublisherUniversity of Dundee
    Publication statusPublished - 2007

    Publication series

    NameDundee Discussion Papers in Economics
    PublisherUniversity of Dundee
    No.206
    ISSN (Print)1473-236X

    Keywords

    • Age-structure
    • Tenure
    • Firing decisions
    • Real options

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