unemployment benefits
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Unemployment benefits are very effective in highly informal labour markets
Evidence from Mauritius shows the consequences of losing a formal job in a labour market characterised by high rates of informal employment are significant. Unemployment benefits help mitigate these effects, while generating only small disincentive effects on labour supply.
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Informal labour markets and rent-extraction from the unemployment insurance system: Evidence from Brazil
When eligible for unemployment benefits, workers and firms make strategic layoffs in the presence of informal labour markets