the unemployment insurance and the optimal search behavior of the unemployed gives rise to a self-reinforcing mechanism … employment turnover and high insurance can co-exist with an American-type steady-state with low unemployment, high employment …In this paper, we incorporate a positive theory of unemployment insurance into a dynamic overlapping generations model …

in geographical mobility, unemployment and labour market institutions. Rational agents vote over unemployment insurance … high unemployment, low geographical mobility and high unemployment insurance, and one ‘American’ steady-state featuring low … unemployment, high mobility and low unemployment insurance. …

. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … States in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies … with calibrated parameters which only differ by the degree of unemployment insurance and assume that they are hit by a …