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Unemployment insurance and the labor market

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  • Josef Zweimüller

Abstract

The existing literature assumes that unemployment insurance (UI) affects the labor market through the job finding rate of eligible workers. I argue that this focus is too narrow. I show evidence for UI effects through three other margins: (i) search externalities; (ii) takeup of other welfare state programs; and (iii) job separations. This suggests that the analysis of optimal UI should take a more comprehensive view of how UI affects the labor market.

Suggested Citation

  • Josef Zweimüller, 2018. "Unemployment insurance and the labor market," ECON - Working Papers 276, Department of Economics - University of Zurich.
    • Handle: RePEc:zur:econwp:276
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    References listed on IDEAS

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    Cited by:

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    2. Yavuz Arslan & Ahmet Degerli & Gazi Kabas, 2019. "Unintended Consequences of Unemployment Insurance Benefits: The Role of Banks," Swiss Finance Institute Research Paper Series 19-44, Swiss Finance Institute.

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    More about this item

    Keywords

    Unemployment insurance; extended benefits; unemployment duration; unemployment inflow; layoffs; disability insurance; optimal benefits;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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