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

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dc.contributor.author BASTEN, Christoph
dc.contributor.author FAGERENG, Andreas
dc.contributor.author TELLE, Kjetil
dc.date.accessioned 2012-08-30T13:35:44Z
dc.date.available 2012-08-30T13:35:44Z
dc.date.issued 2012
dc.identifier.issn 1725-6704
dc.identifier.uri http://hdl.handle.net/1814/23354
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.language.iso en en
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2012/21 en
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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