Voting on Unemployment Insurance
Abstract
In this article, we ask heterogeneous agents in a dynamic general equilibrium economy to vote on the generosity of their unemployment insurance program. We observe the influence on their vote of (1) moral hazard, (2) private alternatives, and (3) changes in employment status. Agents differ in skills, employment probabilities, income prospects, and assets. For a calibration to the United States, we show that: (1) in contrast to the literature, plausible levels of moral hazard need not induce large cuts in optimal benefits. (2) Switching to private insurance is rejected for most status quo, though it would be as generous. (3) Skill groups vote as a block. For reasonable discount factors, solidarity is never broken simultaneously for more than one group.Download Info
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Bibliographic Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 42 (2001)
Issue (Month): 4 (November)
Pages: 903-23
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Handle: RePEc:ier:iecrev:v:42:y:2001:i:4:p:903-23
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Citations
Blog mentions
As found by EconAcademics.org, the blog aggregator for Economics research:- New insights on optimal unemployment insurance
by Economic Logician in Economic Logic on 2008-12-23 12:36:00
Cited by:
- Stephane Pallage & Christian Zimmermann, 2004.
"On Voters' Attitudes Towards Unemployment Insurance Subsidies across Regions: A Canadian Simulation,"
Working papers
2004-34, University of Connecticut, Department of Economics.
- Stéphane Pallage & Christian Zimmermann, 2006. "On voters’ attitudes towards unemployment insurance subsidies across regions: a Canadian simulation," Journal of Population Economics, Springer, vol. 19(2), pages 391-410, June.
- Laszlo Goerke & Markus Pannenberg & Heinrich W. Ursprung, 2007.
"A Positive Theory of the Earnings Relationship of Unemployment Benefits,"
IZA Discussion Papers
3003, Institute for the Study of Labor (IZA).
- Laszlo Goerke & Markus Pannenberg & Heinrich Ursprung, 2010. "A positive theory of the earnings relationship of unemployment benefits," Public Choice, Springer, vol. 145(1), pages 137-163, October.
- Pallage, Stéphane & Scruggs, Lyle & Zimmermann, Christian, 2008.
"Measuring Unemployment Insurance Generosity,"
IZA Discussion Papers
3868, Institute for the Study of Labor (IZA).
- Stephane Pallage & Lyle Scruggs & Christian Zimmermann, 2008. "Measuring Unemployment Insurance Generosity," Working papers 2008-42, University of Connecticut, Department of Economics.
- Stéphane Pallage & Lyle Scruggs & Christian Zimmermann, 2009. "Measuring Unemployment Insurance Generosity," Cahiers de recherche 0921, CIRPEE.
- Niklas Potrafke, 2010. "Labor market deregulation and globalization: empirical evidence from OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(3), pages 545-571, September.
- Stéphane Pallage & Christian Zimmermann, 1999. "Assurance chômage et sociétés," Cahiers de recherche du Département des sciences économiques, UQAM 9904, Université du Québec à Montréal, Département des sciences économiques.
- Stéphane PALLAGE & Lyle SCRUGGS & Christian ZIMMERMANN, 2009.
"Unemployment Insurance Generosity: A Transatlantic Comparison,"
Annales d'Economie et de Statistique,
ENSAE, issue 95-96, pages 15-23.
- Pallage, Stéphane & Scruggs, Lyle & Zimmermann, Christian, 2008. "Unemployment Insurance Generosity: A Trans-Atlantic Comparison," IZA Discussion Papers 3869, Institute for the Study of Labor (IZA).
- Stephane Pallage & Lyle Scruggs & Christian Zimmermann, 2008. "Unemployment Insurance Generosity: A Trans-Atlantic Comparison," Working papers 2008-43, University of Connecticut, Department of Economics.
- Anesi, Vincent & De Donder, Philippe, 2009. "A Positive Theory of Unemployment Insurance and Employment Protection," CEPR Discussion Papers 7333, C.E.P.R. Discussion Papers.
- Hassler, J. & Mora, J.V.R. & Storesletten, K. & Zilibotti, F., 1999.
"Equilibrium Unemployment Insurance,"
Papers
665, Stockholm - International Economic Studies.
- John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 1998. "Equilibrium unemployment insurance," Economics Working Papers 605, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
- Hassler, John & Mora, José & Storesletten, Kjetil & Zilibotti, Fabrizio, 1999. "Equilibrium Unemployment Insurance," Seminar Papers 665, Stockholm University, Institute for International Economic Studies.
- Hassler, John & Rodríguez Mora, José Vicente & Storesletten, Kjetil & Zilibotti, Fabrizio, 1999. "Equilibrium Unemployment Insurance," CEPR Discussion Papers 2126, C.E.P.R. Discussion Papers.
- Andreas Pollak, 2005. "Optimal Unemployment Insurance and Voting," Computational Economics 0505002, EconWPA.
- Pollak, Andreas, 2007. "Optimal unemployment insurance with heterogeneous agents," European Economic Review, Elsevier, vol. 51(8), pages 2029-2053, November.
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