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In many countries, labor courts play a central role in the determination of firing costs by monitoring and supervising the procedures for dismissals, and, eventually, deciding severance payments mandated by the employment protection legislation (EPL). To get some insights about the impact of labor courts on effective firing costs, we explore a new database that contains information on labor courts’ intervention in firings before and after the implementation of significant EPL reforms modifying severance payments and procedures for dismissals. Our results suggest that labor court rulings on economic dismissals did not fully translate the reduction of firing costs mandated by the new EPL to effective firing costs.


In this paper the existence of two positive solutions for a Dirichlet problem having a critical growth, and depending on a real parameter, is established. The approach is based on methods which are totally variational, unlike the fundamental result of Ambrosetti, Brezis and Cerami where a clever combination of topological and variational methods is used in order to obtain the same conclusion. In addition, a numerical estimate of real parameters, for which the two solutions are obtained, is provided. Our main tool is a local minimum theorem.

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