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Unemployment Insurance and Workers' Mobility

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  • Jan Boone

Abstract

This paper analyses the effects of unemployment insurance (UI) in a model with two sectors where one sector is more risky than the other, in the sense that the probability of becoming unemployed is higher. With risk-averse agents it is the case that, over a range of values of UI, increasing UI increases workers' mobility from the safe to the risky sector, thereby increasing both unemployment and income.

Suggested Citation

  • Jan Boone, 2004. "Unemployment Insurance and Workers' Mobility," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(2), pages 275-275, June.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200406)160:2_275:uiawm_2.0.tx_2-g
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    References listed on IDEAS

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    1. Sinn, Hans-Werner, 1995. " A Theory of the Welfare State," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 495-526, December.
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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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