Unemployment Insurance and Workers' Mobility
AbstractThis paper analyses the effects of unemployment insurance (UI) in a model with two sectors where one sector is more risky than the other, in the sense that the probability of becoming unemployed is higher. With risk-averse agents it is the case that, over a range of values of UI, increasing UI increases workers' mobility from the safe to the risky sector, thereby increasing both unemployment and income.
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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 160 (2004)
Issue (Month): 2 (June)
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Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Find related papers by JEL classification:
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
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