Series: IMF Working Papers
Author(s): Herman Bennett
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2007
Keywords: Firing Costs, Financial Restrictions, Liquidity Constraints, Labor&;amp;#x2019;s Liquidity Service, Empirical Evidence, equation, employment, correlation, standard errors,
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...