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Unemployment Benefits and the Timing of Redundancies

Abstract : The literature on unemployment insurance (UI) has primarily focused on its im-pact on unemployment outflows. Using administrative data and a discontinuity inUI benefits at a tenure threshold, I show that inflows also respond to the extentof UI. Based on bunching estimates, the elasticity of the employment duration toUI benefits is estimated to be 0.014, implying that 10% of layoffs in an 8-weekwindow before the threshold are delayed. Examining the mechanisms, the evidencesuggests that employers and employees bargain over contract termination. Takentogether, employers and employees show sophisticated reactions to UI with effectson employment duration.
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Preprints, Working Papers, ...
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https://halshs.archives-ouvertes.fr/halshs-02057145
Contributor : Caroline Bauer Connect in order to contact the contributor
Submitted on : Wednesday, March 17, 2021 - 11:53:44 AM
Last modification on : Friday, March 19, 2021 - 3:26:12 AM

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WP_201914_2.pdf
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  • HAL Id : halshs-02057145, version 2

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Laura Khoury. Unemployment Benefits and the Timing of Redundancies. 2021. ⟨halshs-02057145v2⟩

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