Goerke, Laszlo - Institute for the Study of Labor (IZA) - 2006
In an efficiency wage economy, lump-sum severance pay from which shirkers can be excluded raises employment. However … employment. Thus, the prevalent form of severance payments in OECD countries might have less advantageous employment effects than …, severance payments are usually related to wages. It is shown that earnings-related, mandated severance pay will have ambiguous …