Severance payments in an economy with frictions

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Enforcement of Labor Regulation and Informality (2011, background): “Similarly, if workers are credit constrained, benefits such as severance payments may be welfare enhancing (Alvarez and Veracierto, 2001).”
Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work (2004, background): “The overview study of Ljungqvist (2002) shows that early general equilibrium analyses by Burda (1992), Hopenhayn and Rogerson (1993) and Saint-Paul (1995) display a negative effect of firing costs on employment, whereas later general equilibrium models by Alvarez and Veracierto (2001) and Mortense”
Labour Market Regulations and the Sectoral Reallocation of Workers: The Case of Trade Reforms (2009, background): “20See Alvarez and Veracierto (2001), Delacroix (2003), and Garibaldi and Violante (2005) for environments which model and discuss both the transfer and the tax component of firing costs and study their effects. and concludes that, although theoretically severance payments might not have an effect…”
The recent decline in employment dynamics (2013, background): “Models including Hopenhayn and Rogerson (1993) and Alvarez and Veracierto (2001) have considered the relationship between firing costs and employment dynamics.”