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Measuring the Equilibrium Effects of Unemployment Benefits Dispersion

Author

Listed:
  • Aico van Vuuren

    (Vrije Universiteit Amsterdam)

  • Gerard J. van den Berg

    (Vrije Universiteit Amsterdam)

  • Geert Ridder

    (Johns Hopkins University)

Abstract

This discussion paper resulted in a publication in the Journal of Applied Econometrics (2000). Volume 15, issue 6, pages 547-574. We analyze the impact of unemployment benefits and minimum wagesusing an equilibrium search model which allows for dispersion ofbenefits and productivity levels, job-to-job transitions, andstructural and frictional unemployment. The estimation method usesreadily available aggregate data on marginal distributions ofunemployment durations as well as wages and benefit levels.Different causes of structural and frictional unemployment areinvestigated. We investigate the efficiency of the imposition of asingle benefit level for all household types and the introductionof an Earned Income Tax Credit.

Suggested Citation

  • Aico van Vuuren & Gerard J. van den Berg & Geert Ridder, 1999. "Measuring the Equilibrium Effects of Unemployment Benefits Dispersion," Tinbergen Institute Discussion Papers 99-086/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19990086
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    References listed on IDEAS

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    Cited by:

    1. Cynthia L. Doniger, 2022. "These Caps Spilleth Over: Equilibrium Effects of Unemployment Insurance," Finance and Economics Discussion Series 2022-074, Board of Governors of the Federal Reserve System (U.S.).
    2. Alok Kumar, 2008. "Inflation And The Dispersion Of Real Wages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(2), pages 377-399, May.
    3. Simon Jäger & Benjamin Schoefer & Samuel Young & Josef Zweimüller, 2020. "Wages and the Value of Nonemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1905-1963.
    4. Alok Kumar, 2008. "Inflation And The Dispersion Of Real Wages," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(2), pages 377-399, May.
    5. Belan, Pascal & Carré, Martine & Gregoir, Stéphane, 2010. "Subsidizing low-skilled jobs in a dual labor market," Labour Economics, Elsevier, vol. 17(5), pages 776-788, October.
    6. Alok Kumar, 2008. "Capital Tax, Minimum Wage, and Labor Market Outcomes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 133-154, January.

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    More about this item

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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