Severance Pay Compliance in Indonesia
This paper contributes new evidence from two large household surveys on the compliance of firms with severance pay regulations in Indonesia, and the extent to which changes in severance pay regulations could affect employment rigidity. Compliance a...
| Main Authors: | , , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120104133244 http://hdl.handle.net/10986/3218 |
| id |
okr-10986-3218 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-32182021-04-23T14:02:08Z Severance Pay Compliance in Indonesia Brusentsev, Vera Newhouse, David Vroman, Wayne AGE GROUPS AGED AVERAGE WAGES BUSINESS FAILURE COMPENSATION PACKAGE COMPENSATION RATES DISMISSAL EARNING EARNINGS ECONOMIC CONDITIONS ECONOMICS ELIGIBILITY ELIGIBLE WAGE EMPLOYEE EMPLOYEE REPRESENTATIVES EMPLOYERS EMPLOYMENT EMPLOYMENT LEGISLATION EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT FIRING FIRM SIZE FIRM SURVEYS FORMAL SECTOR WORKERS HIGH WAGE HIRING HOUSEHOLD SURVEYS INCOME INCOME SECURITY INFORMAL ECONOMY INFORMAL SECTOR INTERNATIONAL LABOUR ORGANISATION INVOLUNTARY JOB SEPARATIONS JOB SEPARATION JOB TENURE JOBS LABOR FORCE LABOR LAW LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET OUTCOMES LABOR MARKET PARTICIPANTS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR REGULATIONS LABOR UNIONS LABOUR MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MANPOWER MINIMUM WAGE MINIMUM WAGES NEGOTIATIONS ORGANIZED LABOR PRESENT EVIDENCE PREVIOUS SECTION PRIMARY EDUCATION PRIVATE FIRM PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PROTECTING WORKERS PUBLIC SERVICES SEVERANCE PAYMENT SEVERANCE PAYMENTS SOCIAL PROTECTION SOCIAL SERVICES STATE-OWNED ENTERPRISE STATE-OWNED ENTERPRISES TERMINATION TOTAL EMPLOYMENT TURNOVER UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WAGE DISTRIBUTION WAGE EARNERS WAGE EFFECTS WAGE LEVEL WAGE RATES WORK EXPERIENCE WORKER WORKERS This paper contributes new evidence from two large household surveys on the compliance of firms with severance pay regulations in Indonesia, and the extent to which changes in severance pay regulations could affect employment rigidity. Compliance appears to be low, as only one-third of workers entitled to severance pay report receiving it, and on average workers only collect 40 percent of the payment due to them. Eligible female and low-wage workers are least likely to report receiving payments. Widespread non-compliance is consistent with trends in employment rigidity, which remained essentially unchanged following the large increases in severance mandated by the 2003 law. These results suggest that workers may benefit from a compromise that relaxes severance pay regulations while improving enforcement of severance pay statutes, and possibly establishing a system of unemployment benefits. 2012-03-19T17:28:27Z 2012-03-19T17:28:27Z 2012-01-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120104133244 http://hdl.handle.net/10986/3218 English Policy Research working paper ; no. WPS 5933 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific Southeast Asia Asia Indonesia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGE GROUPS AGED AVERAGE WAGES BUSINESS FAILURE COMPENSATION PACKAGE COMPENSATION RATES DISMISSAL EARNING EARNINGS ECONOMIC CONDITIONS ECONOMICS ELIGIBILITY ELIGIBLE WAGE EMPLOYEE EMPLOYEE REPRESENTATIVES EMPLOYERS EMPLOYMENT EMPLOYMENT LEGISLATION EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT FIRING FIRM SIZE FIRM SURVEYS FORMAL SECTOR WORKERS HIGH WAGE HIRING HOUSEHOLD SURVEYS INCOME INCOME SECURITY INFORMAL ECONOMY INFORMAL SECTOR INTERNATIONAL LABOUR ORGANISATION INVOLUNTARY JOB SEPARATIONS JOB SEPARATION JOB TENURE JOBS LABOR FORCE LABOR LAW LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET OUTCOMES LABOR MARKET PARTICIPANTS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR REGULATIONS LABOR UNIONS LABOUR MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MANPOWER MINIMUM WAGE MINIMUM WAGES NEGOTIATIONS ORGANIZED LABOR PRESENT EVIDENCE PREVIOUS SECTION PRIMARY EDUCATION PRIVATE FIRM PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PROTECTING WORKERS PUBLIC SERVICES SEVERANCE PAYMENT SEVERANCE PAYMENTS SOCIAL PROTECTION SOCIAL SERVICES STATE-OWNED ENTERPRISE STATE-OWNED ENTERPRISES TERMINATION TOTAL EMPLOYMENT TURNOVER UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WAGE DISTRIBUTION WAGE EARNERS WAGE EFFECTS WAGE LEVEL WAGE RATES WORK EXPERIENCE WORKER WORKERS |
| spellingShingle |
AGE GROUPS AGED AVERAGE WAGES BUSINESS FAILURE COMPENSATION PACKAGE COMPENSATION RATES DISMISSAL EARNING EARNINGS ECONOMIC CONDITIONS ECONOMICS ELIGIBILITY ELIGIBLE WAGE EMPLOYEE EMPLOYEE REPRESENTATIVES EMPLOYERS EMPLOYMENT EMPLOYMENT LEGISLATION EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTITLEMENT FIRING FIRM SIZE FIRM SURVEYS FORMAL SECTOR WORKERS HIGH WAGE HIRING HOUSEHOLD SURVEYS INCOME INCOME SECURITY INFORMAL ECONOMY INFORMAL SECTOR INTERNATIONAL LABOUR ORGANISATION INVOLUNTARY JOB SEPARATIONS JOB SEPARATION JOB TENURE JOBS LABOR FORCE LABOR LAW LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET OUTCOMES LABOR MARKET PARTICIPANTS LABOR MARKET REGULATIONS LABOR MARKET RIGIDITY LABOR REGULATIONS LABOR UNIONS LABOUR MANDATORY SEVERANCE MANDATORY SEVERANCE PAY MANPOWER MINIMUM WAGE MINIMUM WAGES NEGOTIATIONS ORGANIZED LABOR PRESENT EVIDENCE PREVIOUS SECTION PRIMARY EDUCATION PRIVATE FIRM PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PROTECTING WORKERS PUBLIC SERVICES SEVERANCE PAYMENT SEVERANCE PAYMENTS SOCIAL PROTECTION SOCIAL SERVICES STATE-OWNED ENTERPRISE STATE-OWNED ENTERPRISES TERMINATION TOTAL EMPLOYMENT TURNOVER UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WAGE DISTRIBUTION WAGE EARNERS WAGE EFFECTS WAGE LEVEL WAGE RATES WORK EXPERIENCE WORKER WORKERS Brusentsev, Vera Newhouse, David Vroman, Wayne Severance Pay Compliance in Indonesia |
| geographic_facet |
East Asia and Pacific East Asia and Pacific Southeast Asia Asia Indonesia |
| relation |
Policy Research working paper ; no. WPS 5933 |
| description |
This paper contributes new evidence from
two large household surveys on the compliance of firms with
severance pay regulations in Indonesia, and the extent to
which changes in severance pay regulations could affect
employment rigidity. Compliance appears to be low, as only
one-third of workers entitled to severance pay report
receiving it, and on average workers only collect 40 percent
of the payment due to them. Eligible female and low-wage
workers are least likely to report receiving payments.
Widespread non-compliance is consistent with trends in
employment rigidity, which remained essentially unchanged
following the large increases in severance mandated by the
2003 law. These results suggest that workers may benefit
from a compromise that relaxes severance pay regulations
while improving enforcement of severance pay statutes, and
possibly establishing a system of unemployment benefits. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Brusentsev, Vera Newhouse, David Vroman, Wayne |
| author_facet |
Brusentsev, Vera Newhouse, David Vroman, Wayne |
| author_sort |
Brusentsev, Vera |
| title |
Severance Pay Compliance in Indonesia |
| title_short |
Severance Pay Compliance in Indonesia |
| title_full |
Severance Pay Compliance in Indonesia |
| title_fullStr |
Severance Pay Compliance in Indonesia |
| title_full_unstemmed |
Severance Pay Compliance in Indonesia |
| title_sort |
severance pay compliance in indonesia |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120104133244 http://hdl.handle.net/10986/3218 |
| _version_ |
1764386622406656000 |