The benefits of financial support after job loss and why programme design matters more than we think (opens in new tab)

In January 2022, the US suspended Ethiopia’s eligibility for the African Growth and Opportunity Act, ending Ethiopia’s preferential trade access to the US market, and leading to a major increase in tariffs, the loss of key buyers and, at some companies, mass layoffs. New evidence shows that losing these formal jobs had lasting negative impacts, highlighting the importance of expanding job-loss support and changing its current design.