This paper is aimed at investigating the effects of government intervention through unemployment benefits on …

The Spanish economy is currently plagued by a deep recession with very high unemployment. We ask how much of the … unemployment increase in Spain can be traced back to the debt deleveraging needs of Spanish households. We use provincial household … debt and sectoral unemployment data and follow Mian and Sufi (2012) to isolate the effect of household debt on Spanish …

unemployment risk. We exploit changes in state unemployment insurance laws as a source of variation in the costs borne by workers … during layoff spells. We find that higher unemployment benefits lead to increased corporate leverage, particularly for labor …-intensive and financially constrained firms. We estimate the ex ante, indirect costs of financial distress due to unemployment risk …

This paper reviews empirical research on finance and labour markets. Preliminary themes in the literature follow …. Finance may interact with labour market institutions to jointly determine labour outcomes. Highly leveraged firms show greater … markets, crowd out productive investment and fuel unemployment. Declining wage shares in OECD countries may be driven in part …