Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/215457
Authors: 
Levander, Mats
Year of Publication: 
2019
Series/Report no.: 
Sveriges Riksbank Working Paper Series 379
Abstract: 
This study examines how the financial buffer of unemployed individuals affects the duration of their unemployment and their replacement income after they find a new position. The analysis is conducted on a highly detailed Swedish dataset that includes information on households' balance sheets. Liquid financial wealth and net wealth both have a positive effect on unemployment duration, which is consistent with the theory that individuals with financial buffers are able to search for new positions for longer periods of time. Moreover, individuals with financial buffers use that extended period of time to search for new positions that offer higher labor income replacement rates.
Subjects: 
Financial buffer
mass layoff
unemployment
JEL: 
D10
D14
Document Type: 
Working Paper

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