NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Marginal Jobs and Job Surplus: A Test of the Efficiency of Separations

Simon Jäger, Benjamin Schoefer, Josef Zweimüller

NBER Working Paper No. 25492
Issued in January 2019, Revised in June 2020
NBER Program(s):Economics of Aging, Labor Studies, Monetary Economics, Public Economics, Productivity, Innovation, and Entrepreneurship, Economic Fluctuations and Growth

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% fewer jobs survive. According to the Coasean view, the destroyed marginal jobs had low joint surplus. Hence, after the repeal, the treatment survivors should be dramatically more resilient than the ineligible control group survivors. Strikingly, the two groups instead exhibit identical post-repeal separation behavior. We provide and empirically support an alternative model in which wage rigidity drives the inefficient separation dynamics.

download in pdf format
   (2247 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w25492

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us