Job Security and the Age-Composition of Employment: Evidence from Chile
This paper develops a simple model to analyze the impact of tenure-based severance payments on firms' hiring and firing decisions. The findings are that under certain conditions, this feature leads to a Last-in First-out firing policy. Also, reforms that increase the slope of the severance-tenure profile tend to increase the probabilities of dismissal of low tenure workers.
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| Format: | Working Papers biblioteca |
| Language: | English |
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Inter-American Development Bank
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| Subjects: | Productivity, E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity, J23 - Labor Demand, J65 - Unemployment Insurance • Severance Pay • Plant Closings, WP-398, |
| Online Access: | http://dx.doi.org/10.18235/0010721 https://publications.iadb.org/en/job-security-and-age-composition-employment-evidence-chile |
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