questions on the determinants of firms' labor demand, unemployed individuals' job search behavior and the state's role in …

We analyze for the first time the welfare effects of unemployment benefits (UBs) in a context of high informality …, exploiting matched administrative and survey data with individual-level information on UB receipt, formal and informal employment …, wages and consumption. Using a difference-in-differences approach, we find that dismissal from a formal job causes a large …

demand shocks lower wages, employment and increase unemployment under equilibrium conditions. Furthermore, the results show … wage subsidy helps to preserve jobs. From a longer-term perspective, it should contribute to the recovery of the labour … duration and amount) and the potential of the labour market to create new jobs. …