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Unemployment accounts

  • Setty, Ofer
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    Unemployment Accounts (UA) are mandatory individual saving accounts that can be used by governments as an alternative to the Unemployment Insurance (UI) system. I study a two tier UA-UI system where the unemployed withdraw from their unemployment account until it is exhausted and then receive unemployment benefits. The hybrid policy provides insurance to workers more efficiently than a traditional UI because it provides government benefits selectively. Using a structural model calibrated to the US economy, I find that relative to a two tier UI system the hybrid policy leads to a welfare gain of 0.9%.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38064.

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    Date of creation: 12 Apr 2012
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    Handle: RePEc:pra:mprapa:38064
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