Overcompensation by severance payments

C-Tier
Journal: Applied Economics
Year: 2006
Volume: 38
Issue: 8
Pages: 925-930

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

An important aim of severance payments is to reduce the economic disadvantages of dismissed employees. However, it may well be the case that a considerable fraction of employees is actually better off, if they are re-employed shortly after their dismissal. This is the first attempt to estimate the relevance of overcompensation by severance payments. It is found that about 7% of dismissed employees or about one quarter of those with severance payments are overcompensated in Germany. In particular, employees with many years of tenure have chances to receive severance payments as well as wage increases in their new jobs subsequent to dismissal.

Technical Details

RePEc Handle
repec:taf:applec:v:38:y:2006:i:8:p:925-930
Journal Field
General
Author Count
1
Added to Database
2026-01-25