Basten, Christoph; Fagereng, Andreas; Telle, Kjetil - KOF Swiss Economic Institute, Department of Management, … - 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 … decreasing in prior wealth, which supports the view that the severance pay effect should be interpreted as evidence of liquidity …