Timed to say goodbye : does unemployment benefit eligibility affect worker layoffs? / Andrea Albanese (LISER, Ghent University and IZA), Corinna Ghirelli (Bank of Spain), Matteo Picchio (Marche Polytechnic University, Ghent University and IZA) ; IZA Institute of Labor Economics
VerfasserAlbanese, Andrea ; Ghirelli, Corinna ; Picchio, Matteo
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, February 2019
Elektronische Ressource
Umfang1 Online-Ressource (50 Seiten) : Diagramme
SerieDiscussion paper ; no. 12171
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Timed to say goodbye [1.56 mb]
Verfügbarkeit In meiner Bibliothek
Zusammenfassung (Englisch)

We study how unemployment benefit eligibility affects the layoff exit rate by exploiting quasi-experimental variation in eligibility rules in Italy. By using a difference-indifferences estimator, we find an instantaneous increase of about 12% in the layoff probability when unemployment benefit eligibility is attained, which persists for about 16 weeks. These findings are robust to different identifying assumptions and are mostly driven by jobs started after the onset of the Great Recession, in the South and for small firms. We argue that the moral hazard from the employer's side is the main force driving these layoffs.