Unemployment Insurance and Workers' Mobility
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.
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Volume (Year): 160 (2004)
Issue (Month): 2 (June)
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