Empirical Analysis of the Severance Pay Non-Performance in Slovenia
AbstractCombining 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, and thus legal entitlement, does not guarantee the actual receipt of the benefit – as experienced in Slovenia in 2000. The findings are threefold: (i) one-third of total obligations incurred by firms failed to be honored and only a small portion of defaulted severance pay claims was reimbursed by the Guarantee Fund; (ii) while both men and women seem to be equally affected, workers older than 40 were disproportionally represented among those whose severance pay claims failed to be honored; and, (iii) among firms that incurred severance pay liabilities, larger and more productive firms were more likely to observe their fiduciary obligations and pay them out. These findings corroborate the weaknesses of severance pay as an income protection program, pointing to the large scale of the non-performance problem and the inequities created by it.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.
Volume (Year): 7 (2009)
Issue (Month): 4 ()
Find related papers by JEL classification:
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John T. Addison & Paulino Teixeira, 2003.
"The Economics of Employment Protection,"
Journal of Labor Research,
Transaction Publishers, vol. 24(1), pages 85-129, January.
- Peter F. Orazem & Milan Vodopivec, 2009.
"Do Market Pressures Induce Economic Efficiency? The Case of Slovenian Manufacturing, 1994–2001,"
Southern Economic Journal,
Southern Economic Association, vol. 76(2), pages 553-576, October.
- Orazem, Peter & Vodopivec, Milan, 2003. "Do Market Pressures Induce Economic Efficiency?: The Case of Slovenian Manufacturing, 1994-2001," Staff General Research Papers 10727, Iowa State University, Department of Economics.
- Orazem, Peter F. & Vodopivec, Milan, 2004. "Do market pressures induce economic efficiency ? The case of Slovenian manufacturing, 1994-2001," Policy Research Working Paper Series 3189, The World Bank.
- Orazem, Peter F. & Vodopivec, Milan, 2003. "Do Market Pressures Induce Economic Efficiency: The Case of Slovenian Manufacturing, 1994-2001," IZA Discussion Papers 901, Institute for the Study of Labor (IZA).
- Holzmann, Robert & Pouget, Yann & Vodopivec, Milan & Weber, Michael, 2011.
"Severance Pay Programs around the World: History, Rationale, Status, and Reforms,"
IZA Discussion Papers
5731, Institute for the Study of Labor (IZA).
- Holzmann, Robert & Pouget, Yann & Vodopivec, Milan & Weber, Michael, 2011. "Severance pay programs around the world : history, rationale, status, and reforms," Social Protection Discussion Papers 62726, The World Bank.
- Jan C. van Ours & Milan Vodopivec, 2006. "How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 351-378, April.
- Reinhard Koman & Ulrich Schuh & Andrea Weber, 2005. "The Austrian Severance Pay Reform: Toward a Funded Pension Pillar," Empirica, Springer, vol. 32(3), pages 255-274, 09.
- Brusentsev, Vera & Newhouse, David & Vroman, Wayne, 2012. "Severance pay compliance in Indonesia," Policy Research Working Paper Series 5933, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alen Jezovnik).
If references are entirely missing, you can add them using this form.