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Does unemployment insurance offer incentives to take jobs in the formal sector? : unemployment insurance can protect against income loss and create formal employment

Bosch Mossi, Mariano - 2016

achieving coverage in countries with high informality, financing the scheme without further distorting the labor market, and …

Persistent link: https://www.econbiz.de/10011549787

Job search, unemployment protection and informal work in advanced economies

Long, Iain W.; Polito, Vito - 2017

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

Strategic Formal Layoffs : Unemployment Insurance and Informal Labor Markets

Doornik, Bernardus Ferdinandus Nazar Van - 2020

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

Welfare effects of unemployment benefits when informality is high

Liepmann, Hannah; Pignatti, Clemente - 2021

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

Unemployment Insurance as a Subsidy to Risky Firms

Doornik, Bernardus Ferdinandus Nazar Van - 2020

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

Unemployment Insurance, Informality, and Precautionary Savings

Bloise, Caio Romeu; Santos, Marcelo Rodrigues - 2022

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