Basten, Christoph; Fagereng, Andreas; Telle, Kjetil - Statistisk Sentralbyrå, Government of Norway - 2012
We identify the causal effect of lump-sum severance payments on non-employment duration in Norway by exploiting a discontinuity in eligibility at age 50. We find that a severance payment worth 1.2 months' earnings at the median lowers the fraction re-employed after a year by six percentage...
