TY  - JOUR
AU  - Abowd,John M.
AU  - Kramarz,Francis
TI  - The Costs of Hiring and Separations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6110
PY  - 1997
Y2  - July 1997
UR  - http://www.nber.org/papers/w6110
L1  - http://www.nber.org/papers/w6110.pdf
N1  - Author contact info:
John M. Abowd
School of Industrial and Labor Relations
261 Ives Hall
Cornell University
Ithaca, NY 14853
Tel: 607/255-8024
Fax: 866/873-9078
E-Mail: John.Abowd@cornell.edu

Francis Kramarz
CREST-INSEE
15 blvd Gabriel Peri
Malakoff CEDEX, 92245
FRANCE
E-Mail: kramarz@ensae.fr
AB  - In this article, we estimate the costs of hiring, separation, and retirement of employees for a representative sample of French establishments in 1992.  The estimates are computed using data from three sources: the Wage Structure Survey (ESS), the Workforce Movement Questionnaire (DMMO), and the Occupational Structure Survey (ESE).  We show that the estimated costs are generally asymmetric (hiring is cheaper than terminations), increasing, and concave functions of the number of entries or exits (either retirements or terminations).  There is a fixed component to each of these costs that is related to the structure of the firm's personnel department.  Our estimates imply that firms should not adjust gradually to the desired level of employment.
ER  -