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Unemployment insurance, informality and precautionary savings

Grant number: 21/11265-1
Support Opportunities:Scholarships abroad - Research Internship - Doctorate (Direct)
Effective date (Start): February 15, 2022
Effective date (End): July 30, 2022
Field of knowledge:Applied Social Sciences - Economics
Principal Investigator:Marcelo Rodrigues dos Santos
Grantee:Caio Romeu Cerqueira Bloise
Supervisor: Ronald Wolthoff
Host Institution: Instituto de Ensino e Pesquisa (Insper). São Paulo , SP, Brazil
Research place: University of Toronto (U of T), Canada  
Associated to the scholarship:20/00371-2 - Labor market effects of unemployment insurance with informality, BP.DD


An important stylized fact about precautionary savings in a labor market characterized by formal and informal workers is that the former saves more compared to the latter. In this project, we build a searching and matching model that incorporates informality in an incomplete markets framework to see the role of Unemployment Insurance (UI) in such behavior. Thus, we add in our UI design the possibility of becoming eligible and exhaust the benet after some specic period. Moreover, based on empirical evidence, we add the possibility of worker to receive the benet while working in informality. Then, we intend to calibrate the model to be consistent with micro and macro evidence for Brazil. (AU)

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