loss. We find that an unexpected job loss leads to a negative consumption response, while this effect is muted for workers … with ex-ante job loss expectations - consistent with the Permanent Income Hypothesis. The negative consumption response to … lower levels of liquid wealth. This supports the notion that the persistence of the unemployment shock is an important …

The Great Recession and the years that followed witnessed a dramatic expansion in the duration of unemployment … states in the UI expansion to estimate the consumption response to extended UI benefits. We estimate that an additional week … of UI increased household consumption by a statistically significant 1.68 percent. Consistent with the hypothesis that …

that occupational unemployment risk does not have a large impact on consumption expenditure. However, despite investigating …The life-cycle consumption and permanent income hypotheses predict that if workers face greater likelihood of … unemployment in the future that lowers expected future income, they will save more today. In this paper, we test this hypothesis by …

This study investigates the short-term impacts of unemployment in Singapore, a setting without public unemployment … income, spending, health, and subjective well-being over two years post-unemployment. Our findings reveal substantial initial … earnings losses with incomplete recovery, as income remains 50.6% below pre-unemployment levels after 24 months. Despite this …

; precautionary saving ; consumption smoothing ; household portfolios ; portfolio allocation ; optimal unemployment insurance … precautionary saving and a shift toward safer assets in the years leading up to unemployment, and depletion of savings during … unemployment. This suggests that at least some households can foresee and prepare for upcoming unemployment, which indicates that …

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 …