Question about frictional unemployment.

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"Dismissal costs are bound to increase unemployment."

Using model of frictional unemployment, comment on the above statement by discussing a proposed policy of imposing a " firing tax" to make it more costly for firms to dismiss their workers.What is the likely influence of such a policy on the natural rate of unemployment and the rate of job vacancies?

A couple of ideas are alright.Not necessary an article.

Thanks for the help.

[此贴子已经被作者于2006-2-17 7:56:51编辑过]

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关键词：unemployment employment frictional Friction question unemployment frictional question