TY  - UNPD
A1  - Pagano, Marco
A1  - Picariello, Luca
T1  - Talent discovery, layoff risk and unemployment insurance
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 603
N2  - In talent-intensive jobs, workers’ quality is revealed by their performance. This enhances productivity and earnings, but also increases layoff risk. Firms cannot insure workers against this risk if they compete fiercely for talent. In this case, the more risk-averse workers will choose less quality-revealing jobs. This lowers expected productivity and salaries. Public unemployment insurance corrects this inefficiency, enhancing employment in talent-sensitive industries, consistently with international evidence. Unemployment insurance dominates legal restrictions on firms’ dismissals, which penalize more talent-sensitive firms and thus depress expected productivity. Finally, unemployment insurance fosters education, by encouraging investment in risky human capital that enhances talent discovery.
T3  - CFS working paper series - 603 
KW  - talent, learning
KW  - layoff risk
KW  - unemployment insurance
Y1  - 2018
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/47390
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-473902
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3274341
IS  - 2 October 2018
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -