'Take It or Go to Court': The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments

L. Goerke, M. Pannenberg, Review of Law & Economics 7 (2011).

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Artikel | Veröffentlicht | Englisch
Autor*in
Goerke, Laszlo; Pannenberg, MarkusFH Bielefeld
Abstract
In 2004, a section was added to the German Protection against Dismissal Act, establishing a new procedure to dismiss an employee, given a predetermined severance payment. Most legal scholars presume the change to be without impact, while a minority of experts claims it to be either beneficial or unfavorable to employees. Our theoretical model suggests that firms will use the new procedure, but that the change in payoffs is indeterminate and, therefore, an empirical issue. Exploiting the fact that collective dismissals are not directly affected by the amendment, difference-in-differences estimates based on panel data for West Germany indicate that the legal change did have a negative effect on severance pay.
Erscheinungsjahr
Zeitschriftentitel
Review of Law & Economics
Band
7
Zeitschriftennummer
2
eISSN
FH-PUB-ID

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Goerke, Laszlo ; Pannenberg, Markus: „Take It or Go to Court“: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments. In: Review of Law & Economics Bd. 7, Walter de Gruyter GmbH (2011), Nr. 2
Goerke L, Pannenberg M. “Take It or Go to Court”: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments. Review of Law & Economics. 2011;7(2). doi:10.2202/1555-5879.1519
Goerke, L., & Pannenberg, M. (2011). “Take It or Go to Court”: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments. Review of Law & Economics, 7(2). https://doi.org/10.2202/1555-5879.1519
@article{Goerke_Pannenberg_2011, title={“Take It or Go to Court”: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments}, volume={7}, DOI={10.2202/1555-5879.1519}, number={2}, journal={Review of Law & Economics}, publisher={Walter de Gruyter GmbH}, author={Goerke, Laszlo and Pannenberg, Markus}, year={2011} }
Goerke, Laszlo, and Markus Pannenberg. “‘Take It or Go to Court’: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments.” Review of Law & Economics 7, no. 2 (2011). https://doi.org/10.2202/1555-5879.1519.
L. Goerke and M. Pannenberg, “‘Take It or Go to Court’: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments,” Review of Law & Economics, vol. 7, no. 2, 2011.
Goerke, Laszlo, and Markus Pannenberg. “‘Take It or Go to Court’: The Impact of Sec. 1a of the German Protection Against Dismissal Act on Severance Payments.” Review of Law & Economics, vol. 7, no. 2, Walter de Gruyter GmbH, 2011, doi:10.2202/1555-5879.1519.

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