How should job displacement wage losses be insured?
Donald Parsons
IZA World of Labor, 2018, No 446, 446
Abstract:
Job displacement represents a serious earnings risk to long-tenured workers through lower re-employment wages, and these losses may persist for many years. Moreover, this risk is often poorly insured, although not for a lack of policy interest. To reduce this risk, most countries mandate scheduled wage insurance (severance pay), and it is voluntarily provided in others. Actual-loss wage insurance is uncommon, although perceived difficulties may be overplayed. Both approaches offer the hope of greater consumption smoothing, with actual-loss plans carrying greater promise.
Keywords: wage insurance; job displacement; severance pay (search for similar items in EconPapers)
JEL-codes: J63 J65 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://wol.iza.org/uploads/articles/446/pdfs/how- ... osses-be-insured.pdf (application/pdf)
https://wol.iza.org/articles/how-should-job-displacement-wage-losses-be-insured (text/html)
Related works:
Journal Article: How should job displacement wage losses be insured? (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:iza:izawol:journl:y:2018:n:446
Access Statistics for this article
IZA World of Labor is currently edited by Pierre Cahuc
More articles in IZA World of Labor from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Institute of Labor Economics (IZA) ().