Using the SOEP this paper analyses to what extent alternative income sources, reactions within the household context, and redistribution by the state attenuate earnings losses of displaced workers. Applying propensity score matching and FE estimations, we find that income from self-employment...

This paper evaluates the strength of information flow from employed past coworkers on the re-employment duration of displaced workers due to plant closures in Austria. Using the Austrian Social Security Database (a matched employer-employee database) we exploit the panel structure of 36 years of...

Why does job displacement, e.g., following import competition, technological change, or economic downturns, result in permanent wage losses? The job displacement literature is silent on whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity...

Many countries rely on monitoring of unemployment insurance and welfare recipients and impose benefit sanctions in case of noncompliance with job search requirements to encourage job search and to prevent abuse of the social insurance system. This paper systematically analyzes the...

In 2001-02, Argentina experienced a wrenching economic crisis. Plan Jefes, implemented in May 2002, was Argentina's institutional response to the increase in unemployment and poverty triggered by the crisis. The program provided a social safety net and appears to have successfully protected some...

Are there negative health effects from losing the job? We analyze the causal effect of job displacement on diabetes incidence and prevalence. Type 2 diabetes is an illness that is directly affected by lifestyle factors and psychosocial stress, and with severe side-effects deteriorating the...

In 2005, the unemployment compensation for long-term unemployed was reduced in Germany. We examine how this reform affected the transition probability to employment. Additionally, we inspect how this effect varies over unemployment duration. We estimate proportional hazard models using German...

This paper studies the role of labor market institutions in business cycle fluctuations. We develop a DSGE model with search and matching frictions and incorporate a US unemployment insurance experience rating system. Layoff taxes based on experience rating finance the cost of unemployment...

The aim of the paper is to examine the consequences of displacement on unemployment duration. Due to ex-ante asymmetric information about the productivity of unemployed applicants, prospective employers use the type of displacement as a costless signal about the ability of the worker when making...