Unemployment Benefits as a Means for Optimal Redistribution
This paper explores the rationale for unemployment benefits as a complement to optimal nonlinear income taxation. We find under plausible assumptions that the optimal unemployment benefits targeted at the low-skilled will be higher than the pure insurance and efficiency purposes would prescribe. The paper thus gives a theoretical justification for using unemployment benefits for redistribution.
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Volume (Year): 65 (2009)
Issue (Month): 1 (March)
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