Abstract
This paper studies the impact of severance pay generosity on workers’ voluntary mobility. The identification strategy exploits a major labor market reform in Spain in February 2012 together with the exposure of some workers to a layoff shock. The results show that the reduction in severance pay induced by the reform made workers who may expect to be displaced in the near future more likely to voluntarily leave their employers. The findings indicate that policies targeting employers may also affect workers’ behavior. They further reveal the importance of taking into account the interactions between employment protection legislation and the unemployment insurance system.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
