cam a22 2 b4500 530142252 CHVBK 20201027044526.0 m d cr |n |||||||| 130723e20070501dcu s|||| 0 |eng|d 978-1-4519-1137-4 1-4519-1137-8 (EBook) : USD 18.00 Retail Price (Publisher) (SERSOL)ssj0001478628 (WaSeSS)ssj0001478628 BIP US WaSeSS Bennett Herman Z. Author Labor's Liquidity Service and Firing Costs [Elektronische Daten] Washington International Monetary Fund May 2007 1 online resource (34 p.) Free full text available for some or all content. Article availability is subject to change without notice, according to publisher decision. Die Verfügbarkeit der Online-Ressourcen ist Entscheidung des Verlags oder des Urhebers und kann ohne vorherige Ankündigung geändert werden. Annotation This paper proposes a new effect of firing costs on firms' behavior that builds from firms' demand for liquidity. When a time gap exists between production and its associated revenues, firing can become a liquidity adjustment tool that allows firms to increase their short-term liquidity. I refer to this feature as labor's liquidity service. the presence of firing costs reduces the value of labor's liquidity service, which affects firms' demand for liquidity, and thus, firms' demand for inputs. In addition to this negative effect at the creation margin, I also show that firing costs imply relatively higher destruction for financially restricted firms. I present a model that develops these ideas and show that the presence of firing costs has a stronger negative effect on production levels of firms facing liquidity constraints. Regression analysis, based on country industry panel data sets, provides empirical evidence in line with the liquidity service effect of firing costs proposed. I reject the hypothesis that the effect of firing costs does not depend on the presence of financial restrictions. I find a relatively stronger negative effect of firing costs on the output of industries with higher liquidity requirements and a relatively stronger negative effect of firing costs on the output of small firms. http://elibrary.imf.org/view/IMF001/08397-9781451866841/08397-9781451866841/08397-9781451866841.xml Volltext frei zugänglich BK020053 XK020053 XK020000 IMF E-Library E-Books von 360MarcUpdates IDSBB FREE FREE OL NELFREE2004 IDSBB 100 1- Bennett Herman Z. Author IDSBB 856 40 http://elibrary.imf.org/view/IMF001/08397-9781451866841/08397-9781451866841/08397-9781451866841.xml Volltext frei zugänglich SWISSBIB 085368210