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Allocation chômage : entre efficacité et égalité

Author

Listed:
  • Audrey Desbonnet

    (Equipe Universitaire de Recherche en Economie Quantitative (EUREQua))

Abstract

This paper reconsiders the trade-off between efficiency and equality of unemployment insurance in a job search model with precautionary saving. Contrary to Cahuc and Lehmann [2000], we show that a decreasing profile of unemployment benefits is able to alleviate this trade-off when agents can save. It is due to a change in saving time profile and an increase in job search effort. The short term unemployed begins to save when unemployment benefits become declining. When the unemployment episode expands, he becomes long term unemployed and dissaves which enables to support his consumption to a higher level

Suggested Citation

  • Audrey Desbonnet, 2006. "Allocation chômage : entre efficacité et égalité," Cahiers de la Maison des Sciences Economiques v06084, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:mse:wpsorb:v06084
    DOI: 10.2307/27739823
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    More about this item

    Keywords

    Unemployment benefits; precautionary saving; equality; efficiency;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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