Staying on the Dole
We develop a simple model of short- and long-term unemployment to study how labor market institutions interact with labor market conditions and personal characteristics of the unemployed. We analyze how the decision to exit unemployment and to mitigate human capital degradation by retraining depends on education, skill degradation, age, labor market tightness, taxes, unemployment insurance benefits and welfare assistance. We extend our analysis by allowing for time-inconsistent choices and demonstrate the possibility of an unemployment trap.
Year of publication: |
2006-10
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Authors: | Strulik, Holger ; Tyran, Jean-Robert ; Vanini, Paolo |
Institutions: | Økonomisk Institut, Københavns Universitet |
Subject: | unemployment | skill degradation | retraining | unemployment benefits | welfare assistance | present-biased preferences |
Saved in:
freely available
Extent: | application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Number 06-18 22 pages |
Classification: | J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; J38 - Public Policy |
Source: |
Persistent link: https://www.econbiz.de/10005749611