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This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search effort among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search effort and benefit sanctions if observed search is...
Persistent link: https://www.econbiz.de/10005196932
This paper provides a review of the recent literature on how incentives in unemployment insurance (UI) can be improved. We are particularly concerned with three instruments, viz. the duration of benefit payments (or more generally the time sequencing of benefits), monitoring in conjunction with...
Persistent link: https://www.econbiz.de/10005419180
This paper analyses crucial design features of unemployment insurance (UI) policies. We examine three different means of improving the efficiency of UI: the duration of benefit payments, monitoring in conjunction with sanctions, and workfare. To that end we develop a quantitative model of...
Persistent link: https://www.econbiz.de/10005644587
participation, employment and disposable income. In contrast to earlier studies we are able to capture both entry and exit effects … mandatory activation of welfare receivers reduce overall welfare participation and increases employment. We also find that …
Persistent link: https://www.econbiz.de/10005644579
of labor market programs on youth employment. We find that the slump in the 1990s has been associated with dramatic … and education has been roughly proportional, however. The evolution of employment and unemployment does not offer much … for labor by skill attributable to technological innovation. The employment crisis has been met by an unprecedented …
Persistent link: https://www.econbiz.de/10005419214
The paper extends the basic Stiglitz (1982) model of optimal income taxation into general search equilibrium. When we extend the basic taxation model to include a more realistic treatment of the labor market, a number of new interesting mechanisms arise. When wages are fixed we find that a "work...
Persistent link: https://www.econbiz.de/10005190471
The paper presents a tractable general equilibrium model of search unemployment that incorporates absence from work as a distinct labor force state. Absenteeism is driven by random shocks to the value of leisure that are private information to the workers. Firms offer wages, and possibly sick...
Persistent link: https://www.econbiz.de/10005642483
A wage equation for a small open economy is derived and estimated on aggregate data for the Nordic countries. The equation is derived from a model of wage bargaining over nominal wages; hence both long run coefficients and adjustment parameters have clear economic interpretations. Wages depend...
Persistent link: https://www.econbiz.de/10005642494
benefits affect individual decisions on absence and search and the implications for employment, unemployment and …
Persistent link: https://www.econbiz.de/10005644525
Persistent link: https://www.econbiz.de/10000343167