connections on hiring probabilities and re-employment outcomes of displaced workers in Portugal. We rely on rich matched employer …

reciprocity and mutual obligations in the design of the welfare state. Unemployment benefits conditioned on work experience, no …

and hence too low unemployment compared to first best. This is due to a business-stealing externality. Raising workers …? bargaining power resolves this inefficiency. Unemployment benefits are a second best alternative to this policy. We establish … unemployment on the other hand. Both can be used for empirical testing. …