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 describing current reform attempts. While a significant part of the paper is devoted to a...

This report examines the two most common programs that provide cash compensation to unemployed workers: unemployment insurance (UI) and unemployment assistance (UA). It compares them in two areas: costs and labor market disincentives. The cost analysis first derives a framework for examining...

One of the most conspicuous consequences of the transition of former socialist economies has been the emergence of large-scale, open unemployment - a phenomenon unheard of before the transition. These economies have thus been confronted with the difficult task of protecting the unemployed while...

In 1998 the Slovenian UI system was drastically reformed. The reform reduced the potential duration of unemployment benefits substantially and simultaneously improved employment services offered to, and monitoring of, the recipients. We find that the reduction in potential benefit duration had a...

Combining information from the firm survey of labor costs with the information about claims filed with the Guarantee Fund by workers whose employers defaulted on their severance pay obligations, the paper analyzes the so-called non-performance problem of severance pay - the fact that coverage,...