Duration-Dependent Unemployment Insurance Payments and Equilibrium Unemployment
AbstractThis paper develops a model of equilibrium unemployment with duration-dependent unemployment insurance (UI) payments. As the government does not observe job offers, there is a moral hazard problem because the option of receiving further UI payments raises the job-seeker's value of remaining unemployment. Extending the duration of UI payments while reducing the level of payments, to hold total generosity constant, results in higher negotiated wages. Simulations suggest that a generosity neutral switch from a six-month UI scheme to a one-year scheme has small effects, but a switch to an indefinite scheme has a large impact on wages and unemployment. Copyright The London School of Economics and Political Science 2004.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 71 (2004)
Issue (Month): (02)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Melvyn Coles & Adrian Masters, 2006.
"Optimal Unemployment Insurance in a Matching Equilibrium,"
Journal of Labor Economics,
University of Chicago Press, vol. 24(1), pages 109-138, January.
- Adrian Masters & Melvyn Coles, 2004. "Optimal Unemployment Insurance in a Matching Equilibrium," Discussion Papers 04-12, University at Albany, SUNY, Department of Economics.
- Ortega, Javier & Rioux, Laurence, 2007.
"On the Extent of Re-Entitlement Effects in Unemployment Compensation,"
IZA Discussion Papers
2807, Institute for the Study of Labor (IZA).
- Ortega, Javier & Rioux, Laurence, 2010. "On the extent of re-entitlement effects in unemployment compensation," Labour Economics, Elsevier, vol. 17(2), pages 368-382, April.
- Javier Ortega & Laurence Rioux, 2006. "On the Extent of Re-entitlement Effects in Unemployment Compensation”," Working Papers 2006-25, Centre de Recherche en Economie et Statistique.
- Ortega, Javier & Rioux, Laurence, 2006. "On the Extent of Re-Entitlement Effects in Unemployment Compensation," CEPR Discussion Papers 5826, C.E.P.R. Discussion Papers.
- Javier Ortega & Laurence Rioux, 2008. "On the Extent of Re-Entitlement Effects in Unemployment Compensation," CEP Discussion Papers dp0846, Centre for Economic Performance, LSE.
- Lollivier, Stefan & Rioux, Laurence, 2005. "A Structural Non-Stationary Model of Job Search: Stigmatization of the Unemployed by Job Offers or Wage Offers?," CEPR Discussion Papers 5108, C.E.P.R. Discussion Papers.
- Miquel Faig & Min Zhang, 2010.
"Labor Market Cycles and Unemployment Insurance Eligibility,"
tecipa-404, University of Toronto, Department of Economics.
- Miquel Faig, 2008. "Labor Market Cycles and Unemployment Insurance Eligibility," 2008 Meeting Papers 183, Society for Economic Dynamics.
- S. Nuray Akin & Brennan Platt, 2012.
"Running Out of Time: Limited Unemployment Benefits and Reservation Wages,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 149-170, April.
- S. Nuray Akin & Brennan Platt, 2011. "Code and data files for "Running Out of Time: Limited Unemployment Benefits and Reservation Wages"," Computer Codes 10-201, Review of Economic Dynamics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.