Ortega, Javier; Rioux, Laurence - London School of Economics (LSE) - 2008
A dynamic labor matching economy is presented, in which the unemployed are either entitled to unemployment insurance … (UI) or unemployment assistance (UA), and the employees are either eligible for UI or UA upon future separations … unemployment, while raising UI benefits harms the unemployed on assistance and raises unemployment. Easier eligibility fo r UI also …