%0 Report
        %A Kim, Seonghoon
%A Wang, Lanjie
        %T Navigating Unemployment without Unemployment Insurance: Evidence from Singapore
        %D 2024
        %8 2024 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 17299
        %U https://www.iza.org/publications/dp17299
        %X This study investigates the short-term impacts of unemployment in Singapore, a setting without public unemployment insurance. Using monthly panel data from the Singapore Life Panel, we analyze dynamic effects on major life outcomes such as income, spending, health, and subjective well-being over two years post-unemployment. Our findings reveal substantial initial earnings losses with incomplete recovery, as income remains 50.6% below pre-unemployment levels after 24 months. Despite this persistent income gap, consumption responses are modest, with total household expenditure decreasing by 13–17% over two years. 
The two-year marginal propensity to consume is about 0.2 which is smaller than estimates in countries with more extensive social insurance, suggesting robust self-insurance mechanisms. We observe increased retirement and self-employment but no significant spousal earnings response. While health status remains largely unchanged, we find substantial declines in life satisfaction. Our study provides insights into unemployment dynamics in a UI-free environment, suggesting modest welfare gains from introducing unemployment benefits in Singapore.
        %K unemployment shock
%K consumption spending
%K event study design
%K monthly panel