Maison des Sciences Humaines
11, Porte des Sciences
L-4366 Esch-sur-Alzette / Belval
LISER Salle de Conference, 1st Floor
3E-seminars@liser.lu
Abstract
Job loss is a common shock in low-income countries, but formal insurance against it is typically limited. In the aftermath of a mass layoff in Ethiopia’s Hawassa Industrial Park, we quasi-experimentally study the impacts of job loss on worker welfare, and then experimentally document the impacts of expanding job-loss insurance payments. We find that job loss has persistent and substantial impacts on long-run employment and consumption expenditure; that job loss payments substantially moderate the fall in consumption expenditure, with large negative impacts on employment if payments are given as a lump sum; and that individuals have a high willingness to pay for additional job-loss insurance.
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Supported by the Luxembourg National Research Fund (PRIDE19/14233191).
More about the 3E DTU
The Doctoral Training Unit (DTU) 3E - Experiments, Ethics and Economics - consists of an interdisciplinary consortium of 9 social scientists who use scientific experiments involving human subjects in their research. The objective of the consortium is to create a formal link for collaboration across the three existing social science research laboratories in Luxembourg, with the aim to push forward the state-of-the-art of what we know about human behavior in economic interactions. The DTU 3E gathers members across 5 Luxembourgish research units:
(1) Luxembourg Institute of Socio-Economic Research LISER
(2) Institute for Health and Behavior IHB (Faculty of Humanities FLSHASE, University of Luxembourg UL)
(3) Institute of Cognitive Science and Assessment COSA (FLSHASE, UL)
(4) Luxembourg School of Finance LSF (Faculty of Law, Economics and Finance FDEF, UL)
(5) Luxembourg Centre of Logistics LCL (Economics Research Centre CREA, FDEF, UL)
