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Labor Market Effects of Unemployment Insurance Design

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  • Tatsiramos, K.
  • Ours, J.C. van

    (Tilburg University, Center for Economic Research)

Abstract

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 Tilburg University, Center for Economic Research in its series Discussion Paper with number 2012-082.

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Date of creation: 2012
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Handle: RePEc:dgr:kubcen:2012082

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Keywords: Unemployment insurance; unemployment dynamics; job search; labor market policy; labor market institutions;

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Cited by:
  1. Holmlund, Bertil, 2013. "What do labor market institutions do?," Working Paper Series 2013:23, Uppsala University, Department of Economics.
  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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