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Economists have concerns about the firing cost implications of mandated severance plans. Analysis reveals that predicted severance plan consequences depend critically on the precise structure of the plan. Whether governments mandate (i) severance insurance plans or (ii) severance savings plans...
Persistent link: https://www.econbiz.de/10013141753
The paper analyses the arbitration of dismissal disputes by Australian labour courts over a 15 years' time span … characterized by two major legal reforms to unfair dismissal statutes. We isolate two channels by which we think the social values … dismissal cases. We also test for and address the Priest-Klein selection effect, which is known to potentially invalidate …
Persistent link: https://www.econbiz.de/10013016200
reduced dismissal costs for the employers of over a tenth of Sweden's workforce. Our difference-in-differences analysis of … their hiring standards in response to changes in dismissal costs …
Persistent link: https://www.econbiz.de/10012870175
Job-to-job turnover provides a way for employers to escape statutory firing costs, as unprofitable workers may … willfully quit their job on receiving an outside offer, thus sparing their incumbent employer the firing costs. Furthermore … employed job search, our model explains why higher firing costs intensify job-to-job turnover at the expense of transitions out …
Persistent link: https://www.econbiz.de/10013119296
seminal study, Lazear (1990) found that contract avoidance of severance pay firing costs was theoretically simple – a bonding …, formal measures of severance-induced firing costs and hiring costs are derived. Firing costs are, it turns out …, systematically less than benefit generosity alone would imply. Moreover their interrelationship with hiring costs, often employed in …
Persistent link: https://www.econbiz.de/10013121754
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 indirect effects. A critical review of the empirical literature reveals that severance benefit...
Persistent link: https://www.econbiz.de/10013123590
This paper examines both the determinants and the effects of changes in the rigidity of labor market legislation across countries over time. Recent research identifies the origin of the legal system as being a major determinant of the cross-country variation in the rigidity of employment...
Persistent link: https://www.econbiz.de/10013099682
Wage inequality does not fully capture differences in job quality. Jobs also differ along other key dimensions, including the prevalence of labor rights violations. We construct novel measures of labor violation rates using data from federal agencies. Within local industries over time, a 10%...
Persistent link: https://www.econbiz.de/10013246035
This paper tests whether the job security offered by stricter employment protection legislation (EPL) undermines positive compensating wage differentials that would otherwise be paid. Specifically, we ask whether industries with relatively more need for layoffs and labour flexibility have lower...
Persistent link: https://www.econbiz.de/10012911172
) for assessing the strictness of national labor laws with respect to employers' firing costs. In addition to the overall … the former USSR with respect to firing costs were extremely rigid and were subsequently liberalized by the 15 successor …
Persistent link: https://www.econbiz.de/10013135176