Cash-on-Hand and the Duration of Job Search. Quasi-Experimental Evidence from Norway

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Show simple item record BASTEN, Christoph FAGERENG, Andreas TELLE, Kjetil 2012-08-30T13:35:44Z 2012-08-30T13:35:44Z 2012
dc.identifier.issn 1725-6704
dc.description.abstract We identify the causal effect of lump-sum severance payments on non-employment duration in Norway by exploiting a discontinuity in eligibility at age 50. We find that a severance payment worth 1.2 months’ earnings at the median lowers the fraction re-employed after a year by seven percentage points. Data on household wealth enable us to verify that the effect is decreasing in prior wealth, which favors an interpretation as liquidity constraints over the alternative of mental accounting. Finding liquidity constraints in Norway, despite its equitable wealth distribution and generous welfare state, means they are likely to exist also in other countries. en
dc.format.mimetype application/pdf
dc.language.iso en en
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2012/21 en
dc.rights info:eu-repo/semantics/openAccess
dc.subject Unemployment en
dc.subject Optimal Unemployment Insurance en
dc.subject Liquidity Constraints en
dc.subject Mental Accounting en
dc.subject Severance Pay en
dc.subject Regression Discontinuity Design en
dc.subject C41 en
dc.subject E21 en
dc.subject E24 en
dc.subject J65 en
dc.title Cash-on-Hand and the Duration of Job Search. Quasi-Experimental Evidence from Norway en
dc.type Working Paper en
dc.neeo.contributor BASTEN|Christoph|aut|
dc.neeo.contributor FAGERENG|Andreas|aut|
dc.neeo.contributor TELLE|Kjetil|aut|
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