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Severance Pay Mandates: Firing Costs, Hiring Costs, and Firm Avoidance Behaviors
severance pay firing costs hiring costs layoff employment insurance savings moral hazard
2012/10/25
The potentially adverse labor market effects of severance pay mandates are a continuing source of policy concern. In a seminal study, Lazear (1990) found that contract avoidance of severance pay firin...
Mandated Severance Pay and Firing Cost Distortions: A Critical Review of the Evidence
severance pay firing costs hiring costs separation rate employment
2012/10/26
Severance pay mandates are an appealing job displacement insurance strategy in developing countries, which have only modest government administrative capacities, but they carry the threat of adverse i...
Severance Pay Programs around the World: History, Rationale, Status, and Reforms
severance pay termination benefit end-of-service benefit termination benefits seniority pay indemnities leaving allowances
2012/10/30
The paper examines severance pay programs around the world by providing the first ever overview of existing programs, examining their historic development, assessing their economic rationale and descr...