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Greece, under the whip of a bailout program engineered by the European Union and the International Monetary Fund, is pushing through unpopular measures like cutting pensions, raising the retirement age and reducing layoff payments and notice.
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As the economy gains strength, companies are reducing layoffs and increasing hiring.
This supports the theoretical implication that implementing wage cuts can be a potential device for reducing layoffs.
Moreover, the changes could help to reduce layoffs down the road.
In exchange for government help, the company is expected to reduce layoffs.
The bill additionally expands "work sharing" programs that can help reduce layoffs at big businesses.
The provision may help reduce layoffs in the coming years, Ms. Shierholz said, supporting the recovery.
"The buyout plan might be able to eliminate or significantly reduce layoffs," said Arnold L. Lehman, the museum's director.
But even if employers reduce layoffs, the nationwide unemployment rate is expected to hit double digits by year-end.
Governor Kasich has repeatedly said the law would give communities the tools they need to hold down labor costs to help reduce layoffs.
That said, the study successfully explained, from the viewpoint of behavioral economics, the mechanism by which wage cuts reduce layoffs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com