A Simple Model of Severance Pay Determination: The Case of Individual Dismissals in Spain
In this article we model the determinants of severance pay for individual dismissals in Spain, following an idea proposed by Jimeno and Toharia (Economistas 55: 243-255, 1993). We point out the importance of severance pay settled before judgment, since the legal framework creates a bargaining space to determine the amount paid by firms in cases of individual dismissal. The model is a simple pre-trial bargaining game between the firm and the worker. It predicts a higher settled severance pay for dismissals on economic grounds than on disciplinary ones, which could explain the perceptions held about the wide use of disciplinary dismissals in Spain. In addition, this approach could be useful in designing labour market reforms aimed at changing dismissal costs, because it allows us to determine the key variables affecting settled severance pay. Our simple model predicts that the key variables for Spain are the severance pay for unfair dismissal and the probability of unfair dismissal. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 2000.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 14 (2000)
Issue (Month): 2 (06)
Pages: 269-290
| Handle: | RePEc:bla:labour:v:14:y:2000:i:2:p:269-290 |
| Contact details of provider: | Postal: Via Columbia, 2 00133 Roma Phone: 0039 06 2040234 Fax: 0039 06 2020687 Web page: http://www.blackwellpublishing.com/journal.asp?ref=1121-7081 Email: More information through EDIRC
|
| Order Information: | Web: http://www.blackwellpublishing.com/subs.asp?ref=1121-7081 |
No references listed on IDEAS
You can help add them by filling out this form.
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.
When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:14:y:2000:i:2:p:269-290. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)
or (Christopher F. Baum)If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.