The Unequal Consequences of Job Loss across Countries

Bertheau, Antoine; Acabbi, Edoardo Maria; Barceló, Cristina; Gulyas, Andreas; Lombardi, Stefano; Saggio, Raffaele

doi:10.3386/w29727

Cited by 22 publications

(15 citation statements)

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“…Keeping all workers in our sample, without any restriction regarding their previous tenure, the share of workers who do not return to the labor market within 5 years is 12 percent. This magnitude is slightly below the 15-17 percent reported inBertheau et al (2022). The difference comes from the samples chosen in each paper Bertheau et al (2022).…”

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confidence: 64%

“…This magnitude is slightly below the 15-17 percent reported inBertheau et al (2022). The difference comes from the samples chosen in each paper Bertheau et al (2022). focus on the effects of displacement, and therefore they impose more restrictive conditions to include a worker in the sample, based on the reasons behind the dismissal.…”

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confidence: 85%

“…6 This idea is consistent with the findings of the literature studying the effects of displacement/unemployment. For instance, Bertheau et al (2022) argue that most of the persistent effects of displacement on future earnings arise through the extensive margin (i.e., workers not returning to the labor market after unemployment). Their results show that, depending on the country, 4 to 19 percent of the workers that experience a displacement do not return to the labor market within 5 years of losing their job.…”

Section: Introductionmentioning

confidence: 99%

“… See Jacobson et al (1993),Stevens (1997),Krolikowski (2017),Lachowska et al (2020), andBertheau et al (2022).…”

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confidence: 99%

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The Value of Unemployment Insurance: Liquidity vs. Insurance Value

Martinez

Liu

2022

Working Paper (Federal Reserve Bank of Cleveland)

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This paper argues that the value of unemployment insurance (UI) can be decomposed into a liquidity component and an insurance component. While the liquidity component captures the value of relieving the cost to access liquidity during unemployment, the insurance component captures the value of protecting the worker against a potential permanent future income loss. We develop a novel sufficient statistics method to identify each component that requires only the labor supply responses to changes in the potential duration of UI and severance payment and implement it using Spanish administrative data. We find that the liquidity component represents half of the value of UI, while the insurance component captures the remaining half. However, the relevance of each component is highly heterogeneous across different groups of workers. Poorer and wealthier workers are both similarly liquidity-constrained, but poorer workers place a higher value on UI because the insurance component is significantly more important for them. On the other hand, wealthier workers and workers with more cash-on-hand value additional UI equally, but the wealthier value its liquidity, while those with more liquidity care about its insurance value. Finally, from a welfare perspective, we show that extending the potential duration of Spain’s UI would increase welfare. However, in our counterfactual case where UI is complemented with the provision of liquidity, the optimal potential duration of Spain's UI should be lower than its current level.

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confidence: 64%

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confidence: 85%

Section: Introductionmentioning

confidence: 99%

“… See Jacobson et al (1993),Stevens (1997),Krolikowski (2017),Lachowska et al (2020), andBertheau et al (2022).…”

mentioning

confidence: 99%

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The Value of Unemployment Insurance: Liquidity vs. Insurance Value

Martinez

Liu

2022

Working Paper (Federal Reserve Bank of Cleveland)

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show abstract

“…In Table 10, Columns (1) and (2), we report the estimates from a linear probability model and discrete-time duration model specification for the likelihood of separating from the current job. 31 30 Involuntary job mobility (job displacement) is typically associated with wage losses (e.g., Jacobson et al, 1993;Bertheau et al, 2022). 31 In both models, we use the same set of controls as in our benchmark wage regression in Column…”

Section: Job Mobilitymentioning

confidence: 99%