DO UNEMPLOYMENT BENEFITS AFFECT ON‐THE‐JOB SEARCH? EVIDENCE FROM LABOR TURNOVER BEFORE ESTABLISHMENT CLOSURES.

We develop a job search model that predicts that potential job losers would reduce on‐the‐job search (OTJS) effort and job‐to‐job transitions before layoffs, in response to an increase in the potential duration of unemployment benefits (UB). To test this prediction, we exploit changes in the maximum...

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Publicado en:Economic Inquiry Vol. 57; no. 3; pp. 1421 - 1441
Autor principal: Gutierrez, Italo A.
Formato: Artículo
Publicado: Wiley-Blackwell Jul2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: DO UNEMPLOYMENT BENEFITS AFFECT ON‐THE‐JOB SEARCH? EVIDENCE FROM LABOR TURNOVER BEFORE ESTABLISHMENT CLOSURES.
      aug:
        au: Gutierrez, Italo A.
        affil: Economist, RAND Corporation, Santa Monica CA 90407
      su:
        Germany
        Job hunting
        Employees
        Unemployed people
        Unemployment insurance
      sug:
        subj:
          Job hunting
          Employees
          Unemployed people
          Germany
          Unemployment insurance
      ab: We develop a job search model that predicts that potential job losers would reduce on‐the‐job search (OTJS) effort and job‐to‐job transitions before layoffs, in response to an increase in the potential duration of unemployment benefits (UB). To test this prediction, we exploit changes in the maximum potential duration of benefits in Germany to analyze how it affected labor turnover before establishment closings. The evidence supports the model prediction that workers with longer potential benefit duration are more likely to remain with their establishments until closure and to enter nonemployment. These findings indicate that the effects of UB on the OTJS decisions of potential job losers should be considered in the optimal design of the parameters of unemployment insurance systems.
      pubtype: Academic Journal
      doctype: Article
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    language: English
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