3 ms·

I do not think so. Transaction costs for employee are small - several months of lost pay (before finding new employer), which would be mostly covered by severan

I do not think so. Transaction costs for employee are small - several months of lost pay (before finding new employer), which would be mostly covered by severance pay or unemployment insurance anyway. Transaction costs for employer depends, they generally pay for lost productivity during training-in period and lost institutional knowledge in case of high-knowledge workers.

toyg 4y ago
> Transaction costs for employee are small Must be nice being wealthy. Most people can barely go a single month without a paycheck. > severance pay or unemployment insurance Lol. In the UK, severance pay is one week per year of service, i.e. nothing. Unemployment insurance typically covers only specific costs, like mortgages, and can be significantly expensive. And this is quite good compared to what happens almost anywhere outside of Europe. > Transaction costs for employer depends For any well-established business with significant redundancy, these costs are minimal. Only small companies suffer significantly when losing an employee.
- zajio1am 4y ago
  > Must be nice being wealthy. Most people can barely go a single month without a paycheck. Not necessary wealthy. For people with median pay, it is more about financial responsibility. According to EU-SILC data more than half EU population has financial reserves for at lest three months. > Lol. In the UK, severance pay is one week per year of service, i.e. nothing. Unemployment insurance typically covers only specific costs, like mortgages, and can be significantly expensive. Here in Czechia it is 2 months notice period, then severance pay is 3 months (for > 2 years of employment), and then 5 months of government unemployment benefits on ~half pay. So 10 months to find a new job. > For any well-established business with significant redundancy, these costs are minimal Even in large businesses you can have small teams with domain experts, losing them can be costly.

toyg 4y ago

> Transaction costs for employee are small Must be nice being wealthy. Most people can barely go a single month without a paycheck. > severance pay or unemployment insurance Lol. In the UK, severance pay is one week per year of service, i.e. nothing. Unemployment insurance typically covers only specific costs, like mortgages, and can be significantly expensive. And this is quite good compared to what happens almost anywhere outside of Europe. > Transaction costs for employer depends For any well-established business with significant redundancy, these costs are minimal. Only small companies suffer significantly when losing an employee.

zajio1am 4y ago
> Must be nice being wealthy. Most people can barely go a single month without a paycheck. Not necessary wealthy. For people with median pay, it is more about financial responsibility. According to EU-SILC data more than half EU population has financial reserves for at lest three months. > Lol. In the UK, severance pay is one week per year of service, i.e. nothing. Unemployment insurance typically covers only specific costs, like mortgages, and can be significantly expensive. Here in Czechia it is 2 months notice period, then severance pay is 3 months (for > 2 years of employment), and then 5 months of government unemployment benefits on ~half pay. So 10 months to find a new job. > For any well-established business with significant redundancy, these costs are minimal Even in large businesses you can have small teams with domain experts, losing them can be costly.