Reemployment wages and UI liquidity effect: a regression discontinuity approach

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Abstract

This paper puts together the non-distortionary liquidity effect of unemployment insurance and job match quality. We identify a big impact on subsidized unemployment duration and a small impact on wages on the job that follows the unemployment spell. Wage gains are heterogeneous and concentrated on individuals at the bottom of the pre-unemployment income distribution. The non-distortionary nature of the liquidity effect reduces the pressure on low-income workers to accept lower productivity jobs.
Original languageUnknown
Pages (from-to)45-52
JournalPortuguese Economic Journal
Volume8
Issue number1
DOIs
Publication statusPublished - 1 Jan 2009

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