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.
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.