A Study of the Correlation between Cost Layoff and Cost Stickiness

The purpose of the present study is to review the correlation between layoff cost and asymmetric cost behavior or cost stickiness.
The number of workers and legal claim costs for searching layoff costs were chosen as 2 criteria in this research. The sample under study included 108 corporations accepted in Tehran Stock Exchange during 2016-2021.
An increase in the number of workers leads to more labor cost stickiness and if their number declines, labor cost stickiness decreases too. As for legal claims, if a corporation has more legal claims, labor cost stickiness goes up and if it has less legal claims, labor cost stickiness comes down too.
Layoff costs play a main role in moderating cost behavior models.