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This paper characterizes optimal unemployment insurance (UI) over the business cycle using a model of equilibrium … unemployment in which jobs are rationed in recession. It offers a simple optimal UI formula that can be applied to a broad class of … equilibrium unemployment models. In addition to the usual statistics (risk aversion and micro-elasticity of unemployment with …
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particular have suffered the 'double whammy' of greater falls in real wages and bigger rises in unemployment. No party has a …
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The researchers note that there have been historically unprecedented falls in UK real wages since the start of the Great Recession. What's more, the long US experience of stagnant real wages (median real weekly earnings in the United States in 2013 were at about the same level as in 1979) might...
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be tolerable at a time of growing consumption for all, but they become less acceptable when the unemployment rate has hit …
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