Work

The Effect of Dismissals Protection on Employment: More on a Vexed Theme

Year: 2000

Type: article

Abstract: This paper presents new results on the relationship between severance pay and labor market performance for a sample of 21 OECD countries, 1956‐1984. Specifically, it evaluates Lazear's empirical argument that severance pay reduces employment and elevates joblessness. His findings are shown not to survive correction for errors in the data and the application of correct estimation procedures. Furthermore, adverse labor market consequences of severance pay are not detected in a dynamic characterization of the Lazear model. Limitations of the approach followed here are also addressed and contextualized.

Source: Southern Economic Journal

DOI: 10.1002/j.2325-8012.2000.tb00323.x

Authors: John T. Addison, Paulino Teixeira, Jean‐Luc Grosso

Institutions: University of South Carolina, University of South Carolina Sumter, University of Coimbra, University of Birmingham

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W1985752603

FWCI: 7.764

Cites: 32

Cited by: 72

Related to: 10