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employers and fired employees, which is even more pronounced when, as happens in many countries, there is the possibility of settlement before labor courts intervene. Hence, the intervention of labor courts determines effective firing costs, both for cases settled out-of-the courts and those ruled by judges (see Daughety and Reinganum, 2012 ). In sum, effective firing costs depend both on severance payments established by EPL and costs associated with litigation. Judges are neither neutral nor unbiased agents, but rather they seem to decide on labor conflicts with some

’, no. 25. Behaghel L., Crépon B., Sédillot B. (2008), The perverse effects of partial employment protection reform: The case of French older workers, ‘Journal of Public Economics’ no. 92. Bentolila S., Bertola G. (1990). Firing Costs and Labour Demand: How Bad Is Eurosclerosis? , ‘Review of Economic Studies’ no. 57. Bertola G. (1990). Job security, employment and wages, ‘European Economic Review’ no. 34. Bertola G., Boeri Tito., Cazes S. (2000), Employment protection in industrialzed countries: the case of new indicators, ‘International Labour Review’ no. 139

.1353/eca.2005.0001 Bentolila, S., and Bertola, G., 1990. Firing Costs and Labour Demand: How Bad is Eurosclerosis? The Review of Economic Studies, 57 (3), 381-402. doi: Bloom, N., 2009. The Impact of Uncertainty Shocks. Econometrica, 77 (3), 623-685. doi: Carvalho, V., and Gabaix, X., 2013. The Great Diversification and its Undoing. The American Economic Review, 103 (5), 1697-1727. doi: EUROSTAT, 2017. Eurostat database. from http

References Altig D., Christiano L.J., Eichenbaum M., Lindé J. (2011), Firm‑specific capital, nominal rigidities and the business cycle, ʽReview of Economic Dynamicsʼ, Elsevier, Vol. 14. Anzuini A., Levy A. (2007), Monetary policy shocks in the new EU members: a VAR approach, ʽApplied Economicsʼ, Taylor & Francis, Vol. 39, No. 9. Bentolila S., Bertola G. (1990), Firing Costs and Labour Demand: How Bad Is Eurosclerosis?, ʽReview of Economic Studiesʼ, Oxford University Press, Vol. 57, No. 3. Bernanke B.S., Blinder A.S. (1992), The Federal Funds Rate and the Channels

), “Asymmetric timeliness tests of accounting conservatism”, Review of Accounting Studies, Vol. 12, No. 1, pp. 95-124. 19. Edelman, D., Nicholson, A. (2011), “Arthur Anderson Auditors and Enron: What happened to their Texas CPA licenses?”, Journal of Finance and Accountancy, Vol. 8, pp. 1-9. 20. Ettredge, M., Huang, Y., Zhang, W. (2012), “Earnings restatements and differential timeliness of accounting conservatism”, Journal of Accounting and Economics, Vol. 53, No. 3, pp. 489-503. 21. Gao, H., Huang, J. (2018), “Employee Firing Costs and Accounting Conservatism: Evidence From

Institutional and Theoretical Economics 156(4), 646-660. Brauninger M. 2000 Wage, Bargaining, Unemployment and Growth Journal of Institutional and Theoretical Economics 156 4 646 660 Burda M.C. (1992): A Note on Firing Costs and Severance Benefits in Equilibrium Unemployment. The Scandinavian Journal of Economics 94(3), 479-489. Burda M.C. 1992 A Note on Firing Costs and Severance Benefits in Equilibrium Unemployment The Scandinavian Journal of Economics 94 3 479 489 Cacciatore M.; R. Duval; G. Fiori (2012): Short-Term Gain or Pain? A DSGE Model-Based Analysis of the Short