We show that the severance pay scheme can serve as bond and improve the welfare. When the authority appropriately adjudges the worker's effort, the increase in a severance payment reduces the shirker's expected benefit, so that the severance pay works as a bond, which is warranted by the authority.
机构:
Universidad de Salamanca, Dept. Económia e Historia Económica, Edificio FES - Campus 'Miguel de Unamuno'Universidad de Salamanca, Dept. Económia e Historia Económica, Edificio FES - Campus 'Miguel de Unamuno'