Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations
Review of Economic Studies,
We present a test of Coasean theories of efficient separations. We study a cohort of jobs from the introduction through the repeal of a large age- and region-specific unemployment benefit extension in Austria. In the treatment group, 18.5% fewer jobs survive the program period. According to the Coasean view, the destroyed marginal jobs had low joint surplus. Hence, after the repeal, the treatment survivors should be more resilient than the ineligible control group survivors. Strikingly, the two groups instead exhibit identical post-repeal separation behavior. We provide, and find suggestive evidence consistent with, an alternative model in which wage rigidity drives the inefficient separation dynamics.
IWH Alumni The IWH would like to stay in contact with its former employees. We...
Purchasing Power Returns – Political Uncertainty High According to the Joint Economic Forecast, Germany's gross domestic...
Financial Systems: The Anatomy of the Market Economy How the financial system is...
The Nasty Gap 30 years after unification: Why East Germany is still 20% poorer than the...
Evaluation of the InvKG and the federal STARK programme
Evaluation of the InvKG and the federal STARK programme InvKG = Coal Regions ...
Joint Economic Forecast
Joint Economic Forecast The joint economic forecast is an instrument for evaluating...
Demographic Change Dossier ...
Productivity: More with Less by Better Available resources are scarce. To sustain our...
Lecturers at CGDE Institutions ...