Please use this identifier to cite or link to this item: https://doi.org/10.1093/rfs/hhac013
Title: Unemployment Insurance as a Subsidy to Risky Firms
Authors: Van Doornik, Bernardus
DIMAS MATEUS FAZIO 
Schoenherr, David
Skrastins, Janis
Issue Date: 22-Jan-2022
Publisher: Oxford University Press (OUP)
Citation: Van Doornik, Bernardus, DIMAS MATEUS FAZIO, Schoenherr, David, Skrastins, Janis (2022-01-22). Unemployment Insurance as a Subsidy to Risky Firms. The Review of Financial Studies. ScholarBank@NUS Repository. https://doi.org/10.1093/rfs/hhac013
Abstract: Abstract We document that a more generous unemployment insurance (UI) system shifts labor supply from safer to riskier firms and reduces the compensating wage differentials that risky firms need to pay. Consequently, a more generous UI system increases risky firms’ value and fosters entrepreneurship by reducing new firms’ labor costs. Exploiting a UI reform in Brazil that affects only part of the workforce allows us to compare labor supply for workers with different degrees of UI protection within the same firm, sharpening the identification of the results. Altogether, our results suggest that UI provides a transfer system from safe to risky firms.
Source Title: The Review of Financial Studies
URI: https://scholarbank.nus.edu.sg/handle/10635/227317
ISSN: 08939454
14657368
DOI: 10.1093/rfs/hhac013
Appears in Collections:Staff Publications
Elements

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
hhac013.pdfAccepted version1.42 MBAdobe PDF

OPEN

Pre-printView/Download

Page view(s)

39
checked on Sep 29, 2022

Download(s)

1
checked on Sep 29, 2022

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.