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Rising UI Benefits over Time

Author

Listed:
  • Tomer Blumkin

    () (Department of Economics,Ben-Gurion University of the Negev)

  • Efraim Sadka

    () (The Eitan Berglas School of Economics, Tel Aviv University)

Abstract

We re-examine a key result in the optimal UI literature that benefits should decline over time. We show that when the population is heterogeneous, Pareto-efficiency may call for multiple payment schedules, some with benefits that fall over time and some with benefits that rise over time.

Suggested Citation

  • Tomer Blumkin & Efraim Sadka, 2008. "Rising UI Benefits over Time," Working Papers 0807, Ben-Gurion University of the Negev, Department of Economics.
  • Handle: RePEc:bgu:wpaper:0807
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    File URL: http://in.bgu.ac.il/en/humsos/Econ/Workingpapers/0807.pdf
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    More about this item

    Keywords

    Optimal Taxation; Re-distribution; Unemployment Insurance; Inequality;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • D6 - Microeconomics - - Welfare Economics

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