Does extended unemployment benefit duration ameliorate the negative employment effects of job loss?

Daniel Fackler, Jens Stegmaier and Eva Weigt

Labour Economics, 2019, vol. 59, issue C, 123-138

Abstract: We study the effect of job displacement due to bankruptcies on earnings and employment prospects of displaced workers and analyse whether extended potential unemployment benefit duration (PBD) ameliorates the negative consequences of job loss. Using German administrative linked employer-employee data, we find that job loss has long-lasting negative effects on earnings and employment. Displaced workers also more often end up in irregular employment relationships (part-time, marginal part-time employment, and temporary agency work) than their non-displaced counterparts. Applying a regression discontinuity approach that exploits a three months PBD extension at the age threshold of 50 we find hardly any effects of longer PBD on labour market outcomes of displaced workers.

Keywords: Job displacement; Unemployment benefit duration; Earnings losses; Irregular work arrangements; Linked employer-employee data (search for similar items in EconPapers)
JEL-codes: H55 I38 J65 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:59:y:2019:i:c:p:123-138

DOI: 10.1016/j.labeco.2019.03.001

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