Severance Pay Programs around the World : History, Rationale, Status, and Reforms

The paper examines severance pay programs around the world by providing the first ever overview of existing programs, examining their historic development, assessing their economic rationale and describing current reform attempts. While a significa...

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Main Authors:	Holzmann, Robert, Pouget, Yann, Vodopivec, Milan, Weber, Michael
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	ALLOWANCES ARBITRAGE BANKRUPTCY BARGAINING BARGAINING POWER BENEFIT PLANS COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COLLECTIVE DISMISSALS COLLUSION CONSUMPTION SMOOTHING CONTRIBUTION RATE DAMAGES DISABILITY DISMISSAL DISMISSED WORKERS DISPLACEMENT DRIVERS EARNINGS ECONOMIC DOWNTURNS ECONOMIC HISTORY ECONOMIC POLICIES ELIGIBILITY EMPLOYEE EMPLOYMENT POLICY EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT ENTITLEMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIRING COSTS FIRING RESTRICTIONS FIRM-SPECIFIC KNOWLEDGE FORMAL SECTOR WORKERS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT BONDS GROSS WAGES HAZARDS HIGH WAGE HIGH WAGE PREMIUM HUMAN CAPITAL HUMAN RESOURCE HUMAN RESOURCES INCENTIVE EFFECTS INCOME INCOME GROUPING INCOME LEVELS INCOME SUPPORT INCOME SUPPORT PROGRAMS INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INNOVATIONS INSURANCE INTEREST RATE INVENTORY JOB DISPLACEMENT JOB SEARCH JOB SECURITY JOB SEPARATION JOB TENURE JOBS LABOR CONTRACT LABOR CONTRACTS LABOR FORCE LABOR INCENTIVES LABOR MARKET LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET PROGRAMS LABOR MARKET REGULATION LABOR MOBILITY LABOR ORGANIZATION LABOR REGULATION LABOR STANDARDS LABOR SUPPLY LABOUR LAYOFFS LIQUIDITY LUMP SUM PAYMENT MANDATED BENEFITS MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MASS LAYOFFS MIDDLE INCOME COUNTRIES MORAL HAZARD MOTIVATION OCCUPATION OCCUPATIONS OLD AGE OLDER WORKERS PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PAYROLL PAYROLL TAXES PENSIONS PER CAPITA INCOME POLITICAL ECONOMY PREVIOUS WAGE PRICE CONTROLS PRIVATE SECTOR PRODUCTIVITY REMUNERATION RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RISK AVERSE RISK AVERSION SAFETY SAFETY NET SAFETY NETS SERVANTS SEVERANCE ARRANGEMENTS SEVERANCE BENEFITS SEVERANCE PAY SEVERANCE PAY SCHEME SEVERANCE PAY SCHEMES SEVERANCE PAY SYSTEM SEVERANCE PAY SYSTEMS SEVERANCE PAYMENT SEVERANCE PAYMENT SCHEMES SEVERANCE PAYMENTS SKILLED WORKERS SOCIAL BENEFITS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY BENEFITS SOCIAL SECURITY SYSTEMS TAXATION TEMPORARY WORKERS TRADE UNIONS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT COMPENSATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFIT UNEMPLOYMENT INSURANCE PROGRAMS UNEMPLOYMENT INSURANCE SYSTEM UNION DENSITY VALUATION WAGE GROWTH WAGE RIGIDITY WAGES WELFARE APPROACH WORKER WORKING HOURS
Online Access:	http://documents.worldbank.org/curated/en/416931468149371414/Severance-pay-programs-around-the-world-history-rationale-status-and-reforms http://hdl.handle.net/10986/27339

id	okr-10986-27339
recordtype	oai_dc
spelling	okr-10986-273392021-04-23T14:04:41Z Severance Pay Programs around the World : History, Rationale, Status, and Reforms Holzmann, Robert Pouget, Yann Vodopivec, Milan Weber, Michael ALLOWANCES ARBITRAGE BANKRUPTCY BARGAINING BARGAINING POWER BENEFIT PLANS COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COLLECTIVE DISMISSALS COLLUSION CONSUMPTION SMOOTHING CONTRIBUTION RATE DAMAGES DISABILITY DISMISSAL DISMISSED WORKERS DISPLACEMENT DRIVERS EARNINGS ECONOMIC DOWNTURNS ECONOMIC HISTORY ECONOMIC POLICIES ELIGIBILITY EMPLOYEE EMPLOYMENT POLICY EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT ENTITLEMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIRING COSTS FIRING RESTRICTIONS FIRM-SPECIFIC KNOWLEDGE FORMAL SECTOR WORKERS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT BONDS GROSS WAGES HAZARDS HIGH WAGE HIGH WAGE PREMIUM HUMAN CAPITAL HUMAN RESOURCE HUMAN RESOURCES INCENTIVE EFFECTS INCOME INCOME GROUPING INCOME LEVELS INCOME SUPPORT INCOME SUPPORT PROGRAMS INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INNOVATIONS INSURANCE INTEREST RATE INVENTORY JOB DISPLACEMENT JOB SEARCH JOB SECURITY JOB SEPARATION JOB TENURE JOBS LABOR CONTRACT LABOR CONTRACTS LABOR FORCE LABOR INCENTIVES LABOR MARKET LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET PROGRAMS LABOR MARKET REGULATION LABOR MOBILITY LABOR ORGANIZATION LABOR REGULATION LABOR STANDARDS LABOR SUPPLY LABOUR LAYOFFS LIQUIDITY LUMP SUM PAYMENT MANDATED BENEFITS MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MASS LAYOFFS MIDDLE INCOME COUNTRIES MORAL HAZARD MOTIVATION OCCUPATION OCCUPATIONS OLD AGE OLDER WORKERS PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PAYROLL PAYROLL TAXES PENSIONS PER CAPITA INCOME POLITICAL ECONOMY PREVIOUS WAGE PRICE CONTROLS PRIVATE SECTOR PRODUCTIVITY REMUNERATION RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RISK AVERSE RISK AVERSION SAFETY SAFETY NET SAFETY NETS SERVANTS SEVERANCE ARRANGEMENTS SEVERANCE BENEFITS SEVERANCE PAY SEVERANCE PAY SCHEME SEVERANCE PAY SCHEMES SEVERANCE PAY SYSTEM SEVERANCE PAY SYSTEMS SEVERANCE PAYMENT SEVERANCE PAYMENT SCHEMES SEVERANCE PAYMENTS SKILLED WORKERS SOCIAL BENEFITS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY BENEFITS SOCIAL SECURITY SYSTEMS TAXATION TEMPORARY WORKERS TRADE UNIONS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT COMPENSATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFIT UNEMPLOYMENT INSURANCE PROGRAMS UNEMPLOYMENT INSURANCE SYSTEM UNION DENSITY VALUATION WAGE GROWTH WAGE RIGIDITY WAGES WELFARE APPROACH WORKER WORKING HOURS The paper examines severance pay programs around the world by providing the first ever overview of existing programs, examining their historic development, assessing their economic rationale and describing current reform attempts. While a significant part of the paper is devoted to a comprehensive 183 cross country review of existing severance arrangements and their characteristics, the paper goes beyond a mere description. It develops and empirically tests three hypotheses about the economic rationale of the program, namely severance pay being: (i) a primitive income protection program, (ii) an efficiency enhancing human resource instrument, and (iii) a job protection instrument. The paper also reviews the recent reforms of Austria, Chile, Italy, and Korea. 2017-06-27T16:23:54Z 2017-06-27T16:23:54Z 2011-05-22 Working Paper http://documents.worldbank.org/curated/en/416931468149371414/Severance-pay-programs-around-the-world-history-rationale-status-and-reforms http://hdl.handle.net/10986/27339 English en_US SP Discussion Paper;No. 1111 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ALLOWANCES ARBITRAGE BANKRUPTCY BARGAINING BARGAINING POWER BENEFIT PLANS COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COLLECTIVE DISMISSALS COLLUSION CONSUMPTION SMOOTHING CONTRIBUTION RATE DAMAGES DISABILITY DISMISSAL DISMISSED WORKERS DISPLACEMENT DRIVERS EARNINGS ECONOMIC DOWNTURNS ECONOMIC HISTORY ECONOMIC POLICIES ELIGIBILITY EMPLOYEE EMPLOYMENT POLICY EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT ENTITLEMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIRING COSTS FIRING RESTRICTIONS FIRM-SPECIFIC KNOWLEDGE FORMAL SECTOR WORKERS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT BONDS GROSS WAGES HAZARDS HIGH WAGE HIGH WAGE PREMIUM HUMAN CAPITAL HUMAN RESOURCE HUMAN RESOURCES INCENTIVE EFFECTS INCOME INCOME GROUPING INCOME LEVELS INCOME SUPPORT INCOME SUPPORT PROGRAMS INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INNOVATIONS INSURANCE INTEREST RATE INVENTORY JOB DISPLACEMENT JOB SEARCH JOB SECURITY JOB SEPARATION JOB TENURE JOBS LABOR CONTRACT LABOR CONTRACTS LABOR FORCE LABOR INCENTIVES LABOR MARKET LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET PROGRAMS LABOR MARKET REGULATION LABOR MOBILITY LABOR ORGANIZATION LABOR REGULATION LABOR STANDARDS LABOR SUPPLY LABOUR LAYOFFS LIQUIDITY LUMP SUM PAYMENT MANDATED BENEFITS MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MASS LAYOFFS MIDDLE INCOME COUNTRIES MORAL HAZARD MOTIVATION OCCUPATION OCCUPATIONS OLD AGE OLDER WORKERS PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PAYROLL PAYROLL TAXES PENSIONS PER CAPITA INCOME POLITICAL ECONOMY PREVIOUS WAGE PRICE CONTROLS PRIVATE SECTOR PRODUCTIVITY REMUNERATION RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RISK AVERSE RISK AVERSION SAFETY SAFETY NET SAFETY NETS SERVANTS SEVERANCE ARRANGEMENTS SEVERANCE BENEFITS SEVERANCE PAY SEVERANCE PAY SCHEME SEVERANCE PAY SCHEMES SEVERANCE PAY SYSTEM SEVERANCE PAY SYSTEMS SEVERANCE PAYMENT SEVERANCE PAYMENT SCHEMES SEVERANCE PAYMENTS SKILLED WORKERS SOCIAL BENEFITS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY BENEFITS SOCIAL SECURITY SYSTEMS TAXATION TEMPORARY WORKERS TRADE UNIONS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT COMPENSATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFIT UNEMPLOYMENT INSURANCE PROGRAMS UNEMPLOYMENT INSURANCE SYSTEM UNION DENSITY VALUATION WAGE GROWTH WAGE RIGIDITY WAGES WELFARE APPROACH WORKER WORKING HOURS
spellingShingle	ALLOWANCES ARBITRAGE BANKRUPTCY BARGAINING BARGAINING POWER BENEFIT PLANS COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COLLECTIVE DISMISSALS COLLUSION CONSUMPTION SMOOTHING CONTRIBUTION RATE DAMAGES DISABILITY DISMISSAL DISMISSED WORKERS DISPLACEMENT DRIVERS EARNINGS ECONOMIC DOWNTURNS ECONOMIC HISTORY ECONOMIC POLICIES ELIGIBILITY EMPLOYEE EMPLOYMENT POLICY EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT ENTITLEMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIRING COSTS FIRING RESTRICTIONS FIRM-SPECIFIC KNOWLEDGE FORMAL SECTOR WORKERS FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT BONDS GROSS WAGES HAZARDS HIGH WAGE HIGH WAGE PREMIUM HUMAN CAPITAL HUMAN RESOURCE HUMAN RESOURCES INCENTIVE EFFECTS INCOME INCOME GROUPING INCOME LEVELS INCOME SUPPORT INCOME SUPPORT PROGRAMS INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL SECTOR INNOVATIONS INSURANCE INTEREST RATE INVENTORY JOB DISPLACEMENT JOB SEARCH JOB SECURITY JOB SEPARATION JOB TENURE JOBS LABOR CONTRACT LABOR CONTRACTS LABOR FORCE LABOR INCENTIVES LABOR MARKET LABOR MARKET OUTCOME LABOR MARKET OUTCOMES LABOR MARKET PROGRAMS LABOR MARKET REGULATION LABOR MOBILITY LABOR ORGANIZATION LABOR REGULATION LABOR STANDARDS LABOR SUPPLY LABOUR LAYOFFS LIQUIDITY LUMP SUM PAYMENT MANDATED BENEFITS MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MASS LAYOFFS MIDDLE INCOME COUNTRIES MORAL HAZARD MOTIVATION OCCUPATION OCCUPATIONS OLD AGE OLDER WORKERS PASSIVE LABOR PASSIVE LABOR MARKET PROGRAMS PAYROLL PAYROLL TAXES PENSIONS PER CAPITA INCOME POLITICAL ECONOMY PREVIOUS WAGE PRICE CONTROLS PRIVATE SECTOR PRODUCTIVITY REMUNERATION RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RISK AVERSE RISK AVERSION SAFETY SAFETY NET SAFETY NETS SERVANTS SEVERANCE ARRANGEMENTS SEVERANCE BENEFITS SEVERANCE PAY SEVERANCE PAY SCHEME SEVERANCE PAY SCHEMES SEVERANCE PAY SYSTEM SEVERANCE PAY SYSTEMS SEVERANCE PAYMENT SEVERANCE PAYMENT SCHEMES SEVERANCE PAYMENTS SKILLED WORKERS SOCIAL BENEFITS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SECURITY BENEFITS SOCIAL SECURITY SYSTEMS TAXATION TEMPORARY WORKERS TRADE UNIONS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT COMPENSATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFIT UNEMPLOYMENT INSURANCE PROGRAMS UNEMPLOYMENT INSURANCE SYSTEM UNION DENSITY VALUATION WAGE GROWTH WAGE RIGIDITY WAGES WELFARE APPROACH WORKER WORKING HOURS Holzmann, Robert Pouget, Yann Vodopivec, Milan Weber, Michael Severance Pay Programs around the World : History, Rationale, Status, and Reforms
relation	SP Discussion Paper;No. 1111
description	The paper examines severance pay programs around the world by providing the first ever overview of existing programs, examining their historic development, assessing their economic rationale and describing current reform attempts. While a significant part of the paper is devoted to a comprehensive 183 cross country review of existing severance arrangements and their characteristics, the paper goes beyond a mere description. It develops and empirically tests three hypotheses about the economic rationale of the program, namely severance pay being: (i) a primitive income protection program, (ii) an efficiency enhancing human resource instrument, and (iii) a job protection instrument. The paper also reviews the recent reforms of Austria, Chile, Italy, and Korea.
format	Working Paper
author	Holzmann, Robert Pouget, Yann Vodopivec, Milan Weber, Michael
author_facet	Holzmann, Robert Pouget, Yann Vodopivec, Milan Weber, Michael
author_sort	Holzmann, Robert
title	Severance Pay Programs around the World : History, Rationale, Status, and Reforms
title_short	Severance Pay Programs around the World : History, Rationale, Status, and Reforms
title_full	Severance Pay Programs around the World : History, Rationale, Status, and Reforms
title_fullStr	Severance Pay Programs around the World : History, Rationale, Status, and Reforms
title_full_unstemmed	Severance Pay Programs around the World : History, Rationale, Status, and Reforms
title_sort	severance pay programs around the world : history, rationale, status, and reforms
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/416931468149371414/Severance-pay-programs-around-the-world-history-rationale-status-and-reforms http://hdl.handle.net/10986/27339
_version_	1764464173763264512

Severance Pay Programs around the World : History, Rationale, Status, and Reforms

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