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Labor Market Effects of Unemployment Insurance Design

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  • Tatsiramos, Konstantinos
  • van Ours, Jan C

Abstract

With the emergence of the Great Recession unemployment insurance (UI) is once again at the heart of the policy debate. In this paper, we review the recent theoretical and empirical evidence on the labor market effects of UI design. We also discuss policy issues related to UI design, including the structure of benefits, the role of liquidity constraints and the pros and cons of a UI system in which the generosity of UI benefits is varying over the business cycle. Finally, we identify potential areas of future research.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9196.

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Date of creation: Oct 2012
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Handle: RePEc:cpr:ceprdp:9196

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Keywords: Job search; Labor market institutions; Labor market policy; Unemployment dynamics; Unemployment insurance;

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Cited by:
  1. Holmlund, Bertil, 2013. "What Do Labor Market Institutions Do?," IZA Discussion Papers 7809, Institute for the Study of Labor (IZA).
  2. Machikita, Tomohiro & Kohara, Miki & Sasaki, Masaru, 2013. "The Effect of Extended Unemployment Benefit on the Job Finding Hazards: A Quasi-Experiment in Japan," IZA Discussion Papers 7559, Institute for the Study of Labor (IZA).

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