Heterogeneous impacts on layoffs of changes in Brazilian unemployment insurance eligibility rules

Tulio Cravo, Christopher O'Leary, Ana Cristina Sierra and Leandro Justino Veloso
Additional contact information
Tulio Cravo: African Development Bank
Ana Cristina Sierra: Inter-American Bank
Leandro Justino Veloso: Inter-American Bank

No 20-318, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: This paper is based on the first use of program administrative data from Brazil’s unemployment insurance (UI) program to assess the impact of changes in UI eligibility criteria on layoff probabilities. We exploit exogenous program changes introduced by executive and legislative changes in 2015 to estimate impacts while accounting for the number of prior UI benefit requests. We estimate that changes in UI eligibility criteria had heterogeneous impacts distinguished by the number of prior benefit requests. We show that the 2015 changes in UI eligibility rules reduced layoffs and find evidence that the changes reduced collusion between workers and employers for layoffs because it became harder to extract subsidies from the UI system. The layoff reductions were greatest before workers' second benefit request.

Keywords: unemployment insurance; labor supply; labor legislation; worker turnover (search for similar items in EconPapers)
JEL-codes: J21 J22 J46 J65 J68 K31 (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-ias and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://research.upjohn.org/cgi/viewcontent.cgi?ar ... ext=up_workingpapers (application/pdf)
This material is copyrighted. Permission is required to reproduce any or all parts.

Related works:
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:upj:weupjo:20-318

Access Statistics for this paper

More papers in Upjohn Working Papers from W.E. Upjohn Institute for Employment Research 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA. Contact information at EDIRC.
Bibliographic data for series maintained by ().