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Optimal Unemployment Insurance With Different Types of Job

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  • Huang, Pidong

Abstract

This paper considers the design of optimal unemployment insurance with multiple types of job. The environment is an extension of Hopenhayn and Nicolini(1997). We study the model by using the fi�rst-order approach. The optimal contract still displays benefit� decreasing over the length of the unemployment spell. The wage tax after reemployment depends on the length of unemployment spell.

Suggested Citation

  • Huang, Pidong, 2013. "Optimal Unemployment Insurance With Different Types of Job," MPRA Paper 46626, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46626
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    File URL: https://mpra.ub.uni-muenchen.de/46626/1/MPRA_paper_46626.pdf
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    References listed on IDEAS

    as
    1. Christopher Phelan & Robert M. Townsend, 1991. "Computing Multi-Period, Information-Constrained Optima," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(5), pages 853-881.
    2. Atkeson Andrew & Lucas Jr. , Robert E., 1995. "Efficiency and Equality in a Simple Model of Efficient Unemployment Insurance," Journal of Economic Theory, Elsevier, vol. 66(1), pages 64-88, June.
    3. Paul Milgrom & Ilya Segal, 2002. "Envelope Theorems for Arbitrary Choice Sets," Econometrica, Econometric Society, vol. 70(2), pages 583-601, March.
    4. Koeppl Thorsten V., 2006. "Differentiability of the Efficient Frontier when Commitment to Risk Sharing is Limited," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-6, April.
    5. Hopenhayn, Hugo A & Nicolini, Juan Pablo, 1997. "Optimal Unemployment Insurance," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 412-438, April.
    6. Stephen E. Spear & Sanjay Srivastava, 1987. "On Repeated Moral Hazard with Discounting," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(4), pages 599-617.
    7. Shavell, Steven & Weiss, Laurence, 1979. "The Optimal Payment of Unemployment Insurance Benefits over Time," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1347-1362, December.
    8. John R. Conlon, 2009. "Two New Conditions Supporting the First-Order Approach to Multisignal Principal-Agent Problems," Econometrica, Econometric Society, vol. 77(1), pages 249-278, January.
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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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