The Response of Employees to Severance Incentives: The University of California's Faculty, 1991-94

John Pencavel

Working Papers from United Nations World Employment Programme-

Abstract: In response to huge budgetary shortfalls in the early 1990s, the University of California offered its older and longer service employees financial inducements to leave. This paper analyzes the responses of UC's faculty to three waves of buyout incentives. It is estimated that an individual presented with ten percent higher severance benefits has a seven to eight percent higher probability of quitting. However, quit probabilities are very difficult to forecast with accuracy. This casts doubt on arguments that maintain that buyouts are superior to employer-initiated layoffs as a mechanism to effect large employment changes.

Keywords: WAGES; EDUCATION (search for similar items in EconPapers)
JEL-codes: I22 J26 J65 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2000
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:fth:unwoem:99-019

Access Statistics for this paper

More papers in Working Papers from United Nations World Employment Programme- International Center for Economic Growth, 243 Kearny Street, San Francisco, California 94108..
Bibliographic data for series maintained by Thomas Krichel ().