Autori
Basten, Christoph
Fagereng, Andreas
TELLE, Kjetil

Titolo
Cash-on-Hand and the Duration of Job Search. Quasi-Experimental Evidence from Norway
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 2012 - Fascicolo: 21 - Pagina iniziale: 1 - Pagina finale: 44

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.




Esportazione dati in Refworks (solo per utenti abilitati)