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Compensating displaced workers

Author

Listed:
  • Donald O. Parsons

    (George Washington University, USA)

Abstract

Job displacement is a serious earnings risk to long-tenured workers, both through spells of unemployment and through reduced wages on subsequent jobs. Less developed countries often rely exclusively on government mandated employer-provided severance pay to protect displaced workers. Higher income countries usually rely on public unemployment insurance and mandated severance pay. Beyond these options, more administratively demanding plans have been proposed, including UI savings accounts and “actual loss†wage insurance, though real-world experience on either model is lacking.

Suggested Citation

  • Donald O. Parsons, . "Compensating displaced workers," IZA World of Labor, Institute of Labor Economics (IZA), pages 444-444, February.
    • Handle: RePEc:iza:izawol:journl:2024:n:444
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    References listed on IDEAS

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    1. repec:mpr:mprres:5070 is not listed on IDEAS
    2. Cozzi, Marco & Fella, Giulio, 2016. "Job displacement risk and severance pay," Journal of Monetary Economics, Elsevier, vol. 84(C), pages 166-181.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    job displacement; unemployment insurance; severance pay; wage insurance; UI savings accounts;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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