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Unemployment insurance and the labor market

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  • Zweimüller, Josef

Abstract

The existing literature assumes that unemployment insurance (UI) affects the labor market through the job finding rate of eligible workers. Recent research has started to broaden the perspective. In this paper, I show evidence for UI effects through three other margins: (i) search externalities; (ii) take-up of other welfare state programs; and (iii) job separations. The evidence suggests that the analysis of optimal UI should take a more comprehensive view of how UI affects the labor market.

Suggested Citation

  • Zweimüller, Josef, 2018. "Unemployment insurance and the labor market," Labour Economics, Elsevier, vol. 53(C), pages 1-14.
  • Handle: RePEc:eee:labeco:v:53:y:2018:i:c:p:1-14
    DOI: 10.1016/j.labeco.2018.06.003
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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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