Regional Unemployment Insurance
We examine the effects of regionalising the budget of unemployment insurance (UI) on wages, employment, and on UI parameters, which, for their part, determine the agents’ preferences concerning such a reform. A numerical example shows that, under reasonable assumptions, the intuition that the reform would enhance efficiency and improve the economic situation of agents from the low- unemployment region to the disadvantage of agents from the high- unemployment region is not valid in general.
|Date of creation:||2001|
|Date of revision:|
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