Data and Code for: "Strategic Formal Layoffs: Unemployment Insurance and Informal Labor Markets"

Principal Investigator(s):  View help for Principal Investigator(s) Bernardus van Doornik, Central Bank of Brazil; David Schoenherr, Princeton University; Janis Skrastins, Washington University in St. Louis

Version:  View help for Version V1

Name File Type Size Last Modified
  Confidential_data 01/12/2022 01:16:PM
  Public_data 02/09/2022 06:27:PM
  ado 01/12/2022 01:16:PM
  code 02/09/2022 06:29:PM
  log file 01/12/2022 01:18:PM
  shapefile 02/09/2022 06:27:PM
Read Me.pdf application/pdf 856.6 KB 10/25/2022 01:05:PM

Project Citation: 

van Doornik, Bernardus, Schoenherr, David, and Skrastins, Janis. Data and Code for: “Strategic Formal Layoffs: Unemployment Insurance and Informal Labor Markets.” Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-12-08. https://doi.org/10.3886/E153522V1

Project Description

Summary:  View help for Summary Exploiting an unemployment insurance (UI) reform in Brazil, we study incentive effects of UI in the presence of informal labor markets. We find that eligibility for UI benefits increases formal layoffs by eleven percent. Most of the additional layoffs are related to workers transitioning to informal employment. We further document formal layoff and recall patterns consistent with rent extraction from the UI system. Workers are laid off as they become eligible for UI benefits and recalled when benefits cease. These patterns are stronger for industries and municipalities with a high degree of labor market informality.

Scope of Project

Subject Terms:  View help for Subject Terms unemployment insurance; informality; strategic layoffs; labor supply; rent-seeking
JEL Classification:  View help for JEL Classification
      J21 Labor Force and Employment, Size, and Structure
      J22 Time Allocation and Labor Supply
      J46 Informal Labor Markets
      J65 Unemployment Insurance; Severance Pay; Plant Closings
      K31 Labor Law
Geographic Coverage:  View help for Geographic Coverage Brazil
Time Period(s):  View help for Time Period(s) 3/2014 – 2/2016
Collection Date(s):  View help for Collection Date(s) 1/1/2014 – 12/1/2016
Universe:  View help for Universe All formally employed workers in Brazil between 2014 and 2016.
Data Type(s):  View help for Data Type(s) census/enumeration data; program source code

Methodology

Data Source:  View help for Data Source IBGE Censo Demografico
IBGE Pesquisa Mensal de Emprego
Ministério do Trabalho, Relação Anual de Informações Sociais
Ministério do Trabalho, Base de Gestão do Seguro Desemprego
Receita Federal do Brasil, Firm and Population registries
Unit(s) of Observation:  View help for Unit(s) of Observation individual

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Published Versions

V1 [2022-12-08]

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