Fairness and layoffs * a theoretical and empirical analysis

Abstract

"There has been no study for Germany of how far and under what conditions layoffs are accepted by the population. Principles of distributive justice, rules of procedural justice, attribution theory and psychological contract theory form the framework of the analysis. Key findings are: Generous compensation payments are perceived to be fairer than transfers or wage cuts to avoid layoffs, though these options are in turn preferred to layoffs without measures to soften the blow of job loss. By actively involving the works council or by relinquishing their bonus payment, the management of a firm can increase the acceptance of layoffs. Layoffs of manual workers are perceived to be fairer than layoffs of graduates; layoffs of employees with general human capital are judged to be fairer than those of employees with firm-specific human capital. The acceptance of layoffs is not lower in Germany than in the USA." (Author's abstract, IAB-Doku) ((en))

Cite article

Pfeifer, C. (2004): Fairness und Kündigungen. Eine theoretische und empirische Analyse. In: Zeitschrift für ArbeitsmarktForschung, Vol. 37, No. 2, p. 127-145.