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Timed to Say Goodbye: Does Unemployment Benefit Eligibility Affect Worker Layoffs?

Andrea Albanese (), Matteo Picchio () and Corinna Ghirelli ()

Labour Economics, 2020, vol. 65, issue C

Abstract: We study how unemployment benefit eligibility affects the layoff exit rate by exploiting quasi-experimental variation in eligibility rules in Italy. By using a difference-in-differences estimator, we find an instantaneous increase of about 12% in the layoff probability when unemployment benefit eligibility is attained, which persists for at least 16 weeks. These findings are robust to different identifying assumptions and are mostly driven by jobs started after the onset of the Great Recession and in the South.

Keywords: Unemployment insurance; Layoffs; Employer–employee moral hazard; Difference-in-differences; Heterogeneous effects (search for similar items in EconPapers)
JEL-codes: C31 C41 J21 J63 J65 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
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Related works:
Working Paper: Timed to say goodbye: Does unemployment benefit eligibility affect worker layoffs? (2019) Downloads
Working Paper: Timed to say goodbye: does unemployment benefit eligibility affect worker layoffs? (2019) Downloads
Working Paper: Timed to Say Goodbye: Does Unemployment Benefit Eligibility Affect Worker Layoffs? (2019) Downloads
Working Paper: Timed to Say Goodbye: Does Unemployment Benefit Eligibility Affect Worker Layoffs? (2019) Downloads
Working Paper: TIMED TO SAY GOODBYE: DOES UNEMPLOYMENT BENEFIT ELIGIBILITY AFFECT WORKER LAYOFFS? (2019) Downloads
Working Paper: Timed to Say Goodbye: Does Unemployment Benefit Eligibility Affect Worker Layoffs? (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:65:y:2020:i:c:s0927537120300506

DOI: 10.1016/j.labeco.2020.101846

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