Freedom to fire enhances the willingness to hire. There’s a balance to be found, but if you make it impossible to get rid of employees you no longer want, you e

Freedom to fire enhances the willingness to hire. There’s a balance to be found, but if you make it impossible to get rid of employees you no longer want, you end up with an anemic labor market, like Europe’s. Barriers to firing also make it harder to justify hiring higher-risk candidates (e.g. former felons, high school dropouts).