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Unemployment and Consumption: are Job Losses Less Painful Near the Mediterranean?

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  • Bentolila, S.
  • Ichino, A.

Abstract

In this paper we analyze the relationship between unemployment and consumption. We study this relationship with panel data on households in five countries. Our empirical relsuts indicate that an increase in the duration of unemployment spells of male household heads is associated with smaller consumption losses in Spanish and Italian households. We discuss this finding in the light of different market and insitutional frameworks.

Suggested Citation

  • Bentolila, S. & Ichino, A., 2000. "Unemployment and Consumption: are Job Losses Less Painful Near the Mediterranean?," Papers 0010, Centro de Estudios Monetarios Y Financieros-.
  • Handle: RePEc:fth:cemfdt:0010
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    More about this item

    Keywords

    CONSUMPTION ; UNEMPLOYMENT ; SAVINGS;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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