I found a Staff Reports paper1 from the Federal Reserve Bank of New York detailing a wage insurance that provides income support to displaced workers who fine reemployment at a lower wage.
The condition of receiving the income support on reemployment encourages workers to find employment quickly, and leads to higher long-run cumulative earnings.
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Hyman, Benjamin, Brian Kovak, and Adam Leive. 2024. “Wage Insurance for Displaced Workers.” Federal Reserve Bank of New York Staff Reports, no. 1105, May 2024. ↩︎
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