TY  - RPRT
        AU  - Figueiredo, Ana
AU  - Marie, Olivier
AU  - Markiewicz, Agnieszka
        TI  - Job Security and Liquid Wealth
        PY  - 2024/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16744
        UR  - https://www.iza.org/publications/dp16744
        AB  - We study changes in job security after displacement and exploit eligibility rules for lump-sum payments in the Netherlands to investigate the role of liquid wealth. Within five years of job loss, the likelihood of being in permanent employment remains 12% lower for displaced workers. Those eligible to a lump-sum transfer experience a significantly smaller negative shock to job security. This effect is driven by workers with low liquid wealth, pointing to liquidity constraints as an important mechanism linking unemployment and job security. Finally, we estimate that losses in job security can explain a fifth of the wage cost associated with job displacement.
        KW  - job loss
KW  - liquid and illiquid wealth
KW  - job security
KW  - severance pay
KW  - The Netherlands
        ER  -