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Social Insurance and Transition Author info | Abstract | Publisher info | Download info | Related research | Statistics Andrew Atkeson
Patrick J. Kehoe
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We study the general equilibrium effects of social insurance on the transition in a model in which the process of moving workers from matches in the state sector to new matches in the private sector takes time and involves uncertainty. We find that adding social insurance may slow transition. When there are incentive problems in this rematching process, the optimal social insurance scheme may involve forced layoffs and involuntary unemployment.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
4411.
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Date of creation: Jul 1993Date of revision:
Publication status: published as International economic review. May 1996, vol. 37, no. 2.Handle: RePEc:nbr:nberwo:4411Note: EFGContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
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