LAYOFFS IN THE U.S.: Overviewing the American Experience

In Brazil, the openness of the economy to international trade in 1990, brought to light the non-competitiveness capacity of its industry and the need for changing the labor legislation. [...] However, these attachments depend upon some factors such as the existence of the same level of information across workers and firms (symmetric information), the level of enforcement of the implicit contract arrangements and also the existence of perfect competition in the market for attachments. [...] D – Impacts of Unemployment Insurance on layoffs Since the development of studies related to the job search and the labor contract theory, unemployment insurance have attracted the attention of many economists, and many econometrics studies have been revealed that the design of the insurance program can increase the spell of unemployment. [...] The jobs in these sectors follow cyclical changes in the economy, during the recession, these sectors tend to compress the number of job positions, while in the expansion the number increases. [...] Theoretically, the concept of layoffs is linked to the idea of long term attachments between firms and workers, in a way that employers decide the duration of the layoff and their decision takes into account the amount invested in human capital and the level of skills among their workers.