When a worker is laid off or fired, they experience a significant out-of-pocket cost. That cost of job loss depends on how much they were earning in their job, how long it takes them to find a new job, the level of unemployment benefits they are entitled to, and the level of their pay in the new job. The higher the cost of job loss, the more employers will 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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