Discussion paper

DP4241 On-the-Job Training, Firing Costs and Employment

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).


Snower, D and P Diaz-Vazquez (2004), ‘DP4241 On-the-Job Training, Firing Costs and Employment‘, CEPR Discussion Paper No. 4241. CEPR Press, Paris & London. https://cepr.org/publications/dp4241