An Owerview Of Severance Pay Schemes In Southeastern Europe
An Owerview Of Severance Pay Schemes In Southeastern Europe

Summary/Abstract: The paper provides an overview of severance pay regulation in the South-Eastern Europe (SEE) countries, thereby complementing empirical analysis of severance pay programs with findings on the SEE countries. We found that in general severance pay schemes are very similar among the SEE countries, but vary significantly in their modalities. The results of the empirical analysis show that generous severance pay is negatively associated with GDP per capita, labor productivity and employment. These results reinforce previous findings on this topic and lead to the conclusion that traditional severance pay schemes need to be reformed. However, the inventory among the SEE countries shows that until now no serious debate on the issue took place.

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