Severance Payments for Dismissed Employees Severance Payments for Dismissed Employees in Germany
This contribution investigates severance payments for dismissed employees in Germany. Particularly, it responds to the following questions: Who receives severance payments? By which characteristics is the level of severance payments determined? Is overcompensation to be considered a relevant issue? Hereby, individual and collective dismissals are distinguished. This is the first study on this issue using individual representative data the German Socio-Economic Panel and multivariate methods. The results indicate that rather women, persons with many years of tenure and working in big firms receive severance payments. There is a huge variance in the size of the payments, which can only partly be explained by tenure, the wage and citizenship. About one quarter of dismissed employees is better off in their following careers independent of having received a severance payment.
|Date of creation:||Mar 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany|
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de
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.:
- Miguel Á. Malo, 2000. "A Simple Model of Severance Pay Determination: The Case of Individual Dismissals in Spain," LABOUR, CEIS, vol. 14(2), pages 269-290, 06.
- Burda, Michael C, 1992. " A Note on Firing Costs and Severance Benefits in Equilibrium Unemployment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(3), pages 479-89.
- Andrea Ichino & Michele Polo & Enrico Rettore, .
"Are Judges Biased by Labor Market Conditions?,"
192, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Jens Suedekum & Peter Ruehmann, 2003.
"Severance Payments and Firm-specific Human Capital,"
CEIS, vol. 17(1), pages 47-62, 03.
- Peter Rühmann & Jens Südekum, 2001. "Severance Payments and Firm-Specific Human Capital," Departmental Discussion Papers 111, University of Goettingen, Department of Economics.
- Miguel Malo, 2001. "European Labour Law and Severance Pay Determination in Collective Redundancies," European Journal of Law and Economics, Springer, vol. 12(1), pages 73-90, July.
- Robert Gibbons & Lawrence Katz, 1989.
"Layoffs and Lemons,"
NBER Working Papers
2968, National Bureau of Economic Research, Inc.
- Malo, M.A aand Joaquin Pérez., 2002.
"Individual dismissals in Europe and the United States: A model on the influence of the legal framework on firing costs,"
Doctorado en Economía- documentos de trabajo
9/02, Programa de doctorado en Economía. Universidad de Alcalá..
- Miguel Malo & Joaquín Pérez, 2003. "Individual Dismissals in Europe and the United States: A Model on the Influence of the Legal Framework on Firing Costs," European Journal of Law and Economics, Springer, vol. 15(1), pages 47-63, January.
- Oliver Fabel, 2002. "Severance Pay Rules And Structural Layoff Decisions," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 54(2), pages 118-135, April.
- E. Galdon-Sanchez, Jose & Guell, Maia, 2003.
"Dismissal conflicts and unemployment,"
European Economic Review,
Elsevier, vol. 47(2), pages 323-335, April.
- José Enrique Galdón Sánchez & Maia Güell, 2001. "Dismissal conflicts and unemployment," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0105, Departamento de Economía - Universidad Pública de Navarra.
- Yolanda K. Kodrzycki, 1998. "Effects of employer-provided severance benefits on reemployment outcomes," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 41-68.
- Heiner Heseler & Ulrich Mückenberger*, 1999. "The Management of Redundancies in Europe: The Case of Germany," LABOUR, CEIS, vol. 13(1), pages 183-235, 03.
- Booth, Alison L, 1995.
"Layoffs with Payoffs: A Bargaining Model of Union Wage and Severance Pay Determination,"
London School of Economics and Political Science, vol. 62(248), pages 551-64, November.
- Booth, Alison L, 1993. "Layoffs with Payoffs: A Bargaining Model of Union Wage and Severance Pay Determination," CEPR Discussion Papers 843, C.E.P.R. Discussion Papers.
- Jahn, Elke J. & Schnabel, Claus, 2003. "Bestandsschutz durch Abfindungen: Höhere Rechtssicherheit und Effizienz," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW – German National Library of Economics / Leibniz Information Centre for Economics, vol. 83(4), pages 219-223.
- Cristina Pita, 1997. "Breach Penalties in Labour Contracts: Advance Notice and Severance Pay," LABOUR, CEIS, vol. 11(3), pages 469-495, November.
- Hamermesh, Daniel S. & Pfann, Gerard Antonie, 1996.
"Adjustment Costs in Factor Demand,"
CEPR Discussion Papers
1371, C.E.P.R. Discussion Papers.
- Alessandra Del Boca & Paola Rota, 1998. "How Much Does Hiring and Firing Cost? Survey Evidence from a Sample of Italian Firms," LABOUR, CEIS, vol. 12(3), pages 427-449, 09.
- Laszlo Goerke, 2001.
"Redundancy Pay and Collective Dismissals,"
CESifo Working Paper Series
582, CESifo Group Munich.
- Jennifer Hunt, 1994.
"Firing Costs, Employment Fluctuations and Average Employment: An Examination of Germany,"
NBER Working Papers
4825, National Bureau of Economic Research, Inc.
- Hunt, Jennifer, 2000. "Firing Costs, Employment Fluctuations and Average Employment: An Examination of Germany," Economica, London School of Economics and Political Science, vol. 67(266), pages 177-202, May.
- John T. Addison & Paulino Teixeira & Jean-Luc Grosso, 2000. "The Effect of Dismissals Protection on Employment: More on a Vexed Theme," Southern Economic Journal, Southern Economic Association, vol. 67(1), pages 105-122, July.
When requesting a correction, please mention this item's handle: RePEc:bon:bonedp:bgse4_2004. 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: (BGSE Office)
If references are entirely missing, you can add them using this form.