TY  - RPRT
        AU  - Grund, Christian
        TI  - Severance Payments for Dismissed Employees in Germany
        PY  - 2003/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 875
        UR  - https://www.iza.org/index.php/publications/dp875
        AB  - This contribution investigates severance payments for dismissed employees in Germany.
Subsequent to an overview about the legal framework, we respond to the following
questions: Who receives severance payments? By which characteristics is the level of
severance payments determined? Is overcompensation to be considered a relevant issue?
Hereby, individual and collective dismissals are always distinguished. This is the first study
on this issue using individual representative data – the German Socio-Economic Panel – and
multivariate methods. The results indicate that rather women, persons with many years of
tenure and working in big firms receive severance payments. There is a huge variance in the
size of the payments, which can only partly be explained by tenure, the wage, firm size and
the region. At least one quarter of dismissed employees is better off in their following careers
independent of having received a severance payment.
        KW  - plant closings
KW  - severance payments
KW  - dismissals
        ER  -