Firms select not only how many, but also which workers to hire. Yet, in standard searchmodels of the labor market, all workers have the same probability of being hired. We arguethat selective hiring crucially affects welfare analysis. Our model is isomorphic to a searchmodel under random hiring...

This paper studies optimal unemployment benefit levels and optimal proportional income taxrates over the business cycle. Previous research suggests that policy makers should makeunemployment insurance (UI) dependent on the business cycle because the UI system canbe used to smooth consumption...

We examine the relationship between unemployment benefits and unemployment using Swedish regional data. To estimate the effect of an increase in unemployment insurance (UI) on unemployment we exploit the ceiling on UI benefits. The benefit ceiling, coupled with the fact that there are regional...

By simulating the working of the unemployment insurance savings accounts (UISAs) in Slovenia using a methodology similar to Feldstein and Altman (1998), the paper examines two questions: how viable is this system as an alternative to traditional unemployment insurance (UI) system, and how the...

This paper studies contingent, temporary unemployment insurance (UI) coverag´s impactson employment and unemployment durations using a duration model extended with heapingconsiderations and a recent Canadian panel data...

The Swedish labour market and social policy is aimed at facilitating flexibility in the labourmarket. The active labour market policy and the design of the social security pension systemare two frequently mentioned examples of that policy...

Based on a sequence of reforms in the Norwegian unemployment insurance (UI) system, weshow that activity-oriented UI regimes – i.e., regimes with a high likelihood of requiredparticipation in active labor market programs, duration limitations on unconditional UIentitlements, and high sanction...