scholarly journals Shortening the Potential Duration of Unemployment Benefits and Labor Market Outcomes: Evidence from a Natural Experiment in Germany

2018 ◽  
Author(s):  
Inna Petrunyk ◽  
Christian Pfeifer
2013 ◽  
Vol 5 (1) ◽  
pp. 262-301 ◽  
Author(s):  
Gabriel J Felbermayr ◽  
Mario Larch ◽  
Wolfgang Lechthaler

How do changes in labor market institutions, like more generous unemployment benefits in one country, affect labor market outcomes in other countries? We set up a two-country Armingtonian trade model with frictions on the goods and labor markets. Contrary to the literature, higher labor market frictions increase unemployment at home and abroad. The strength of the spillover depends on the relative size of countries and on trade costs. It is exacerbated when real wages are rigid. Using panel data for 20 rich OECD countries, and controlling for institutions as well as for business cycle comovement, we confirm our theoretical predictions. (JEL E24, F16, J64, J65)


2018 ◽  
Vol 124 (1) ◽  
pp. 49-110 ◽  
Author(s):  
David J. Harding ◽  
Jeffrey D. Morenoff ◽  
Anh P. Nguyen ◽  
Shawn D. Bushway

2017 ◽  
Vol 9 (3) ◽  
pp. 223-261 ◽  
Author(s):  
W. Bentley MacLeod ◽  
Evan Riehl ◽  
Juan E. Saavedra ◽  
Miguel Urquiola

We explore how college reputation affects the “big sort,” the process by which students choose colleges and find their first jobs. We incorporate a simple definition of college reputation—graduates' mean admission scores—into a competitive labor market model. This generates a clear prediction: if employers use reputation to set wages, then the introduction of a new measure of individual skill will decrease the return to reputation. Administrative data and a natural experiment from the country of Colombia confirm this. Finally, we show that college reputation is positively correlated with graduates' earnings growth, suggesting that reputation matters beyond signaling individual skill. (JEL I23, I26, J24, J31)


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