Seven Facts about Temporary Layoffs

Arash Nekoei and Andrea Weber

No 14845, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We establish seven facts about temporary layoffs (TL), whose employers communicated an anticipated recall date at layoff: (1) The higher the current TL share at firm/industry-level, the higher (lower) the future recall (layoff) likelihood for both temporary and permanent layoffs (employees); (2) TL is more prevalent in: the upper-middle part of the wage distribution, (3-4) in mass layoffs and recessions; (5) The later the communicated recall date, the lower the accepted new-job wage, unconditional and conditional on non-employment duration; (6) TLs' new-job hazard rate (wage) jumps (drops) when recall likelihood falls; (7) Extending unemployment benefits increases separations in recall-intense sectors.

Keywords: Classical; unemployment (search for similar items in EconPapers)
Date: 2020-06
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Citations: View citations in EconPapers (6)

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