In this paper, we incorporate a positive theory of unemployment insurance into a dynamic overlapping generations model … unemployment insurance levels in a politico-economic equilibrium. The interaction between the political decision about the level of … the unemployment insurance and the optimal search behavior of the unemployed gives rise to a self-reinforcing mechanism …

. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … 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 common technological shock …

rates are consistent with weakly increasing returns in matching. The resulting equilibrium is not efficient. Unemployment …

The paper presents a model that allows a unified analysis of sickness absence and search unemployment. Sickness appears … affect individual decisions on absence and search and the implications for employment, unemployment and nonparticipation. The …

small reduction in the unemployment benefits, or introducing a small cash bonus for workers that get a new job, may have no … e.ect on unemployment in some cases, while eradicating significant levels of unemployment in other cases. Our analysis … multiple equilibria may exist in a game involving both workers and an unemployment-averse government. Furthermore, we explore a …

The paper presents a tractable general equilibrium model of search unemployment that incorporates absence from work as …

programme when they take into account that workfare is a condition for remaining eligible for unemployment benefits. This … outside option becomes less attractive. Introduction of workfare policies into an unemployment insurance scheme is shown to … contribute to a reduction in both open and total unemployment. It is also shown that the direct search effects of workfare …