Cost of job loss, Microeconomics

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When a worker is fired orlaid off, they experience a significant out-of-pocket cost. That cost of job loss relies on how much they were earning in their job, how long it takes them to find a new job, level of unemployment benefits they are entitled to and level of their pay in new job. The higher the cost of job loss, the more employers would be able to threaten and discipline their workers. Cutting unemployment insurance has been one key neoliberal strategy for increasing the cost of job loss.


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