An opportunity cost approach to redundancy compensation: An application to Sri Lanka
The paper proposes the principles which should guide the design of a compensation package for redundant workers following a program of voluntary retrenchment. It is argued that the compensation should be equal to the opportunity cost of leaving the enterprise. Using a simple specification for the opportunity cost, a payment schedule is derived and simulated for the case of Sri Lanka.
Quote ItemEstudios de Economía, Vol. 21, número especial, Noviembre de 1994 Págs. 113-126