Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations

Simon Jäger, Benjamin Schoefer and Josef Zweimüller

No 25492, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a test of Coasean theories of efficient separations. We study a cohort of jobs from the introduction through the repeal of a large, age- and region-specific unemployment benefit extension in Austria. In the treatment group, 18% fewer jobs survive. According to the Coasean view, the destroyed marginal jobs had low joint surplus. Hence, after the repeal, the treatment survivors should be dramatically more resilient than the ineligible control group survivors. Strikingly, the two groups instead exhibit identical post-repeal separation behavior. We provide and empirically support an alternative model in which wage rigidity drives the inefficient separation dynamics.

JEL-codes: E2 E24 H0 H3 J0 J01 J18 J23 J31 J63 J64 J65 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-mac
Note: AG LS ME PE PR EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Published as Simon Jäger & Benjamin Schoefer & Josef Zweimüller, 2023. "Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations," The Review of Economic Studies, vol 90(3), pages 1265-1303.

Downloads: (external link)
http://www.nber.org/papers/w25492.pdf (application/pdf)

Related works:
Journal Article: Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations (2023)
Working Paper: Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations (2019)
Working Paper: Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations (2019)
Working Paper: Marginal jobs and job surplus: a test of the efficiency of separations (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:25492

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w25492

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().