This paper analyzes the effect of severance payments on the probability of separation at given tenure, wages and other individual and firm characteristics. It studies a mandatory deferred wage scheme of the Italian labour market (Trattamento di Fine Rapporto, TFR). Deferred wages increase job...

Path dependence in occupations refers to the observed occupational distribution in a population or in a sub-population at a point in time that depends on changes that occurred years or centuries earlier. Path dependence in occupations can be the outcome of the cumulative concentration of certain...