Severance Pay Rules And Structural Layoff Decisions
The paper develops a formal model of the optimal age-tenure structure in layoff decisions. Based on a linear Bayesian learning process a severance pay rule, which is derived from voluntary participation and separation conditions for individual workers, determines the dismissal costs. An optimal selection policy generally equalizes the expected profit contributions over the marginal workers retained in each age-group. Given plausible assumptions, the selection criteria and layoff rates for older workers decrease. However, the effect of tenure on selection and layoff rates remains ambiguous.
Volume (Year): 54 (2002)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: |
Phone: 0049 89 2180 2166
Fax: 0049 89 2180 6327
Web page: http://www.sbr-online.com
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sbr:abstra:v:54:y:2002:i:2:p:118-135. 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: (sbr)The email address of this maintainer does not seem to be valid anymore. Please ask sbr to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.