Garibaldi, Pietro; Violante, Giovanni L - C.E.P.R. Discussion Papers - 2004
transfer component by making the implicit assumption that, in the presence of wage rigidity, mandatory severance payments have … workers, that this presumption is in general misplaced: the impact of severance payments on unemployment is qualitatively … endogenously determined by a centralized monopoly union of insiders, severance payments are either neutral or they increase …