Should severance pay be consistent for all workers?

J. Ignacio García Pérez ()

IZA World of Labor, 2015, No 174, 174

Abstract: The trend towards labor market flexibility in Europe has typically involved introducing legislation that makes it easier for firms to issue temporary contracts with low firing costs, while not changing the level of protection that is in place for permanent jobs. This has created a strong “dualism” in some European labor markets, which might affect turnover, wage setting, and human capital accumulation. In view of this, some economists propose replacing the existing system of temporary and permanent contracts by a single open-ended contract for new hires, with severance pay smoothly increasing with tenure on the job.

Keywords: single contract; permanent and temporary contracts; severance pay; dual labor markets (search for similar items in EconPapers)
JEL-codes: J23 J32 J63 J64 J65 J68 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://wol.iza.org/articles/should-severance-pay-b ... or-all-workers-1.pdf (application/pdf)
http://wol.iza.org/articles/should-severance-pay-be-consistent-for-all-workers (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izawol:journl:y:2015:n:174

Access Statistics for this article

IZA World of Labor is currently edited by Pierre Cahuc

More articles in IZA World of Labor from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Institute of Labor Economics (IZA) ().