An opportunity cost approach to redundancy compensation: an application to Sri Lanka

Ariel Fiszbein

Estudios de Economia, 1994, vol. 21, issue esp Year 1994, 113-126

Abstract: The paper proposes the principles which should guide the design of a compensation package for redundant workers following a program of voluntary retrenchment. It is argued that the compensation should be equal to the opportunity cost of leaving the enterprise. Using a simple specification for the opportunity cost, a payment schedule is derived and simulated for the case of Sri Lanka.

Keywords: Compensation package; opportunity cost; Sri Lanka. (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:21:y:1994:i:esp:p:113-126

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