BEA online research seminar: Unemployment Insurance as a Subsidy to Risky Firms
Baltic Economic Association on June 18 organizes the online Research Seminar about labor economics, financial intermediation, and organizational economics.
Speaker: Jānis Skrastiņš (Washington University in St. Louis, Olin Business School)
Title: Unemployment Insurance as a Subsidy to Risky Firms
Co-authors: Bernardus van Doornik (Banco Central do Brasil), Dimas Fazio (London Business School), and David Schoenherr (Princeton)
Date: Thursday, June 18
Time: 16:00 Vilnius, Riga, Tallinn
To register and obtain the Zoom dial-in details, send an email to balticeconasso@gmail.com
Abstract: We document that a more generous unemployment insurance (UI) system shifts labor supply from safer to riskier firms and reduces compensating wage differentials 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 identification of the results. Altogether, our results suggest that UI provides a transfer system from safe to risky firms.
The seminar series is scheduled to take place once a month with the purpose of developing personal contacts and promoting joint scholarly research and intellectual exchange between economists of the Baltic States.
More information: http://balticecon.org/event/bea-online-research-seminar-janis-skrastins/
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