Non-performance of the Severance Pay Program in Slovenia

Combining information from the Firm Survey of Labor Costs with the information about claims filed with the Guarantee Fund by workers whose employers defaulted on their severance pay obligations, the paper analyzes the so-called non-performance problem of severance pay--the fact that coverage, and th...

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Bibliographic Details
Main Authors:	Vodopivec, Milan, Madjar, Lilijana, Dolenc, Primoz
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Compensation Packages Payment Methods J330 Labor Turnover Vacancies Layoffs J630
Online Access:	http://hdl.handle.net/10986/5001

id	okr-10986-5001
recordtype	oai_dc
spelling	okr-10986-50012021-04-23T14:02:20Z Non-performance of the Severance Pay Program in Slovenia Vodopivec, Milan Madjar, Lilijana Dolenc, Primoz Compensation Packages Payment Methods J330 Labor Turnover Vacancies Layoffs J630 Combining information from the Firm Survey of Labor Costs with the information about claims filed with the Guarantee Fund by workers whose employers defaulted on their severance pay obligations, the paper analyzes the so-called non-performance problem of severance pay--the fact that coverage, and thus legal entitlement, does not guarantee the actual receipt of the benefit--as experienced in Slovenia in 2000. The findings are threefold: (i) one-third of total obligations incurred by firms failed to be honored and only a small portion of defaulted severance pay claims were reimbursed by the Guarantee Fund; (ii) while both men and women seem to be equally affected, workers older than 40 were disproportionally represented among those whose severance pay claims failed to be honored; and, (iii) among firms that incurred severance pay liabilities, larger and more productive firms were more likely to observe their fiduciary obligations and pay them out. These findings corroborate the weaknesses of severance pay as an income protection program, pointing to the large scale of the non-performance problem and the inequities created by it. 2012-03-30T07:30:47Z 2012-03-30T07:30:47Z 2009 Journal Article Financial Theory and Practice 1846887X http://hdl.handle.net/10986/5001 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Slovenia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Compensation Packages Payment Methods J330 Labor Turnover Vacancies Layoffs J630
spellingShingle	Compensation Packages Payment Methods J330 Labor Turnover Vacancies Layoffs J630 Vodopivec, Milan Madjar, Lilijana Dolenc, Primoz Non-performance of the Severance Pay Program in Slovenia
geographic_facet	Slovenia
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Combining information from the Firm Survey of Labor Costs with the information about claims filed with the Guarantee Fund by workers whose employers defaulted on their severance pay obligations, the paper analyzes the so-called non-performance problem of severance pay--the fact that coverage, and thus legal entitlement, does not guarantee the actual receipt of the benefit--as experienced in Slovenia in 2000. The findings are threefold: (i) one-third of total obligations incurred by firms failed to be honored and only a small portion of defaulted severance pay claims were reimbursed by the Guarantee Fund; (ii) while both men and women seem to be equally affected, workers older than 40 were disproportionally represented among those whose severance pay claims failed to be honored; and, (iii) among firms that incurred severance pay liabilities, larger and more productive firms were more likely to observe their fiduciary obligations and pay them out. These findings corroborate the weaknesses of severance pay as an income protection program, pointing to the large scale of the non-performance problem and the inequities created by it.
format	Journal Article
author	Vodopivec, Milan Madjar, Lilijana Dolenc, Primoz
author_facet	Vodopivec, Milan Madjar, Lilijana Dolenc, Primoz
author_sort	Vodopivec, Milan
title	Non-performance of the Severance Pay Program in Slovenia
title_short	Non-performance of the Severance Pay Program in Slovenia
title_full	Non-performance of the Severance Pay Program in Slovenia
title_fullStr	Non-performance of the Severance Pay Program in Slovenia
title_full_unstemmed	Non-performance of the Severance Pay Program in Slovenia
title_sort	non-performance of the severance pay program in slovenia
publishDate	2012
url	http://hdl.handle.net/10986/5001
_version_	1764393551437758464

Non-performance of the Severance Pay Program in Slovenia

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