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This paper investigates the incentives that may induce workers to supplement income from unemployment benefits by engaging in temporary informal work. Using a dynamic model of job-search with moral hazard that incorporates a stylised schedule of benefit payments, we describe how informal sector...
Persistent link: https://www.econbiz.de/10011761509
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...
Persistent link: https://www.econbiz.de/10012842086
In this paper, we document that a more generous unemployment insurance (UI) system shifts labor supply from safer to riskier firms and reduces the compensating wage differential that riskier firms are required to pay. Reallocation of labor supply towards riskier firms has real implications for...
Persistent link: https://www.econbiz.de/10012847424
This paper investigates the incentives that may induce workers to supplement income from unemployment benefits by engaging in temporary informal work. Using a dynamic model of job-search with moral hazard that incorporates a stylised schedule of benefit payments, we describe how informal sector...
Persistent link: https://www.econbiz.de/10012929479
We analyze for the first time the welfare effects of unemployment benefits (UBs) in a context of high informality …
Persistent link: https://www.econbiz.de/10012596314
Exploiting an unemployment insurance (UI) reform in Brazil, we study incentive effects of UI in the presence of informal labor markets. We find that eligibility for UI benefits increases formal layoffs by twelve percent. Most of the additional formal layoffs are related to workers transitioning...
Persistent link: https://www.econbiz.de/10012852422
Empirical evidence shows that in a labor market characterized by a severe degree of informality, unemployment insurance … model that incorporates informality in an incomplete markets framework to analyze the impact of changing (UI) components. In … while working in informality. We find that increasing the benefit eligibility criteria fosters employment while the duration …
Persistent link: https://www.econbiz.de/10014237425
in labor market indicators such us unemployment and labor informality. We document that robots mainly replace formal …
Persistent link: https://www.econbiz.de/10014468031
poverty and informality in the country, taking into account the simultaneous two-way relationship between these two phenomena …
Persistent link: https://www.econbiz.de/10011384097
decomposition unveils that the contribution of the flow from informality to unemployment is larger than that of the flow from formal …
Persistent link: https://www.econbiz.de/10014331921