Job Security and the Age Composition of Employment: Evidence from Chile

37 Pages Posted: 21 Apr 2011

See all articles by Carmen Pages

Carmen Pages

Inter-American Development Bank (IADB); IZA Institute of Labor Economics

Claudio E. Montenegro

World Bank Group; Universidad de Chile, Economics Department

Multiple version iconThere are 2 versions of this paper

Date Written: September 1999

Abstract

This paper develops a simple model to analyze the impact of tenure-based severance payments on firms` hiring and firing decisions. The findings are that under certain conditions, this feature leads to a Last-in First-out firing policy. Also, reforms that increase the slope of the severance-tenure profile tend to increase the probabilities of dismissal of low tenure workers.

Suggested Citation

Pages-Serra, Carmen and Montenegro, Claudio E., Job Security and the Age Composition of Employment: Evidence from Chile (September 1999). IDB Working Paper No. 329, Available at SSRN: https://ssrn.com/abstract=1817194 or http://dx.doi.org/10.2139/ssrn.1817194

Carmen Pages-Serra (Contact Author)

Inter-American Development Bank (IADB) ( email )

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IZA Institute of Labor Economics

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Germany

Claudio E. Montenegro

World Bank Group ( email )

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MSN3-311
Washington, DC 20433
United States

Universidad de Chile, Economics Department

Diagonal Paraguay 257
Torre 26, Of. 1801
Santiago
Chile

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