Cozzi, Marco; Fella, Giulio - Economics Department, Queen's University - 2015
This paper is a quantitative, equilibrium study of the insurance role of severance pay when workers face displacement … solved numerically and calibrated to the US economy. In contrast to previous studies that have analyzed severance payments in … afforded by severance pay are sizable. These gains are higher if, as in most OECD countries, severance pay increases with …