Publication Date

2-6-2020

Series

Upjohn Institute working paper ; 20-318

DOI

10.17848/wp20-318

Abstract

This paper is based on the first use of program administrative data from Brazil’s unemployment insurance (UI) program to assess the impact of changes in UI eligibility criteria on layoff probabilities. We exploit exogenous program changes introduced by executive and legislative changes in 2015 to estimate impacts while accounting for the number of prior UI benefit requests. We estimate that changes in UI eligibility criteria had heterogeneous impacts distinguished by the number of prior benefit requests. We show that the 2015 changes in UI eligibility rules reduced layoffs and find evidence that the changes reduced collusion between workers and employers for layoffs because it became harder to extract subsidies from the UI system. The layoff reductions were greatest before workers' second benefit request.

Issue Date

January 2020

Subject Areas

UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Unemployment insurance

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Citation

Cravo, Túlio, Christopher J. O'Leary, Ana Cristina Sierra, and Leandro Justino Veloso. 2020. "Heterogeneous impacts on layoffs of changes in Brazilian unemployment insurance eligibility rules." Upjohn Institute Working Paper 20-318. Kalamazoo, MI: W. E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp20-318