Structural unemployment and the costs of firm entry and exit
Author
dc.contributor.author
Janiak, Alexandre
Admission date
dc.date.accessioned
2014-02-12T20:42:17Z
Available date
dc.date.available
2014-02-12T20:42:17Z
Publication date
dc.date.issued
2013
Cita de ítem
dc.identifier.citation
Labour Economics 23 (2013) 1–19
en_US
Identifier
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doi 10.1016/j.labeco.2013.02.003
Identifier
dc.identifier.uri
https://repositorio.uchile.cl/handle/2250/126398
General note
dc.description
Artículo de publicación ISI
en_US
Abstract
dc.description.abstract
I build a large-firm model of the labor market with matching frictions and firm turnover. Firms hire both
labor and capital. The model allows me to assess the impact of two regulatory frictions on unemployment:
i) the administrative costs of establishing a new firm and ii) the share of capital entrepreneurs recover
when exiting. These regulations explain half the unemployment gap between Continental Europe and the
United States in the calibrated model. More precisely, exit regulation is responsible for the entire explained
gap, with entry regulation playing no role. The degree of returns to scale and the presence of fixed capital
in the model are important assumptions behind these results.