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Welfare, leisure and unemployment

Author

Listed:
  • Hall, Axel
  • Zoega, Gylfi

Abstract

We augment the Pissarides (2000) matching model to show that both unemployment benefits and increased bargaining power have the effect of simultaneously reducing employment and increasing the leisure enjoyed by those employed.

Suggested Citation

  • Hall, Axel & Zoega, Gylfi, 2020. "Welfare, leisure and unemployment," Economics Letters, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520301865
    DOI: 10.1016/j.econlet.2020.109277
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    References listed on IDEAS

    as
    1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    2. Edward C. Prescott, 2004. "Why do Americans work so much more than Europeans?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 28(Jul), pages 2-13.
    3. Olivier Blanchard, 2004. "The Economic Future of Europe," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 3-26, Fall.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Job search; Unemployment; Working hours;
    All these keywords.

    JEL classification:

    • 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
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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