Unemployment Benefits as a Means for Optimal Redistribution

This paper explores the rationale for unemployment benefits as a complement to optimal nonlinear income taxation. We find under plausible assumptions that the optimal unemployment benefits targeted at the low-skilled will be higher than the pure insurance and efficiency purposes would prescribe. The paper thus gives a theoretical justification for using unemployment benefits for redistribution.

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Year of publication:	2009
Authors:	Engström, Per
Published in:	FinanzArchiv: Public Finance Analysis. - ISSN 0015-2218. - Vol. 65.2009, 1, p. 21-36
Subject:	optimal nonlinear income taxation \| unemployment benefits \| redistribution

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Extent:	text/html
Type of publication:	Article
Classification:	H21 - Efficiency; Optimal Taxation ; J22 - Time Allocation and Labor Supply ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004999939