Labour distribution affected by firing costs: Bank of Canada paper

bank-of-canada-2

The higher the cost to fire permanent staff, the more wage inequality there is between employees, according to a Bank of Canada paper, published on Friday.

Shutao Cao, Enchuan Shao and Pedro Silos, the paper's authors, examine the conditions under which firms and workers decide whether to enter a permanent or a temporary relationship to identify to what extent firing costs help shape the wage distribution. The authors note that firms offer permanent contracts to 'good' matches, as they risk

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: