Arbeitspapier
Consumption smoothing during unemployment
A vast literature has investigated how unemployment insurance (UI) affects labor supply. However, the distorting effect of UI on labor supply is to a large extent determined by how well UI benefits smooth private consumption, which in turn depends on the resources available to the unemployed. To determine UI's consumption-smoothing effect, I exploit a kink in the deterministic relationship between previous earnings and unemployment benefits. The randomized assignment of benefits created by the kink allows me to identify how UI affect the use of private wealth to finance consumption during unemployment spells. Using Swedish data for 2000 - 2002 I find that a large share of the unemployed actually can consume at the same level as they did prior to the layoff. I also find that loans are of great importance to consumption smoothing as more than half the sample lacks buffer savings. This is further emphasized for different subpopulations. Women, couples, and older individuals holds significantly larger liquid wealth than men and young singles.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2011:11
- Klassifikation
-
Wirtschaft
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings
- Thema
-
saving
wealth
unemployment benefit
unemployment
consumption smoothing
Konsumentenverhalten
Arbeitslosenversicherung
Sparen
Vermögen
Schweden
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kolsrud, Jonas
- Ereignis
-
Veröffentlichung
- (wer)
-
Uppsala University, Department of Economics
- (wo)
-
Uppsala
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kolsrud, Jonas
- Uppsala University, Department of Economics
Entstanden
- 2011
Ähnliche Objekte (12)
Consumption smoothing and liquidity income redistribution
Consumption smoothing in a balanced budget regim
Consumption smoothing and the welfare cost of uncertainty
Sovereign Debt Renegotiation in a Consumption-Smoothing Model
Consumption Smoothing in the Demand for Health Care
Transitory Income Changes and Consumption Smoothing: Evidence from Mexico
Spillovers of community-based health interventions on consumption smoothing
Consumption smoothing across seven countries: A time series analysis
Spillovers of community-based health interventions on consumption smoothing
Job displacement insurance and (the lack of) consumption-smoothing
Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso
Consumption Smoothing and the Structure of Labor and Credit Markets
Consumption smoothing and liquidity income redistribution
Consumption smoothing in a balanced budget regim
Consumption smoothing and the welfare cost of uncertainty
Sovereign Debt Renegotiation in a Consumption-Smoothing Model
Consumption Smoothing in the Demand for Health Care
Transitory Income Changes and Consumption Smoothing: Evidence from Mexico
Spillovers of community-based health interventions on consumption smoothing
Consumption smoothing across seven countries: A time series analysis
Spillovers of community-based health interventions on consumption smoothing
Job displacement insurance and (the lack of) consumption-smoothing
Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso
Consumption Smoothing and the Structure of Labor and Credit Markets
Consumption smoothing and liquidity income redistribution
Consumption smoothing in a balanced budget regim
Consumption smoothing and the welfare cost of uncertainty
Sovereign Debt Renegotiation in a Consumption-Smoothing Model
Consumption Smoothing in the Demand for Health Care
Transitory Income Changes and Consumption Smoothing: Evidence from Mexico
Spillovers of community-based health interventions on consumption smoothing
Consumption smoothing across seven countries: A time series analysis
Spillovers of community-based health interventions on consumption smoothing
Job displacement insurance and (the lack of) consumption-smoothing
Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso