Article thumbnail
Location of Repository

Strong Hysteresis due to Age Effects

By Yu-Fu Chen and Gylfi Zoeg


Strong hysteresis in the labour market (see Cross, 1995) requires workers to be heterogeneous in terms of the cost of hiring and firing. We show how such heterogeneity arises naturally in labour markets due to differences in workers’ age by showing that both the hiring and the firing thresholds for productivity are age dependent. The presence of strong hysteresis does not for this reason depend on ad-hoc differences in the cost of hiring and firing workers

Topics: Hysteresis, hiring and firing costs, heterogeneous workers
Publisher: University of Iceland
Year: 2010
OAI identifier:
Provided by: SIRE
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • (external link)
  • Suggested articles

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.