During the Great Recession, U.S. unemployment benefits were extended by up to 73 weeks. Theory predicts that extensions … increase unemployment by discouraging job search, a partial equilibrium effect. Using data from the large job board … implies that the general equilibrium effect reduces the impact of unemployment insurance on unemployment by 40%: increasing …

We develop a computable general equilibrium model of the United States economy to study the unemployment effects of … carbon tax on aggregate unemployment is small and similar across the two labor mobility assumptions (0.2-0.3 percentage … points). The effect on unemployment in fossil fuel sectors is much larger under the immobility assumption - a 30 percentage …

-to-job transitions are considerable, and may outweigh those from lowering frictions in hiring from unemployment …

Before 1979, unemployment insurance (UI) benefits were not treated as taxable income in the United States. Several … has had the predicted effect of reducing unemployment duration.The study uses data on a sample of persons that filed for … presents persuasive evidence of a tax effect on unemployment duration. The 1979 policy change is estimated to have reduced …

response to demand and productivity shifts. Unemployment is sustained because the marginal value of labor is not equated across … transactions cost-mobility constraints. Contracts provide full unemployment insurance for risks that are diversifiable by pooling … value because it reduces lifetime consumption. The main empirical implication of contract theory is shown to be closely …

We use the model to evaluate a tax-financed unemployment insurance scheme. Higher insurance is beneficial for … unemployment effects, unless workers are close to indifferent between working and not working; thus, recent findings are …

This paper presents new evidence on why unemployment insurance (UI) benefits affect search behavior and develops a … unemployment durations caused by UI benefits is due to a "liquidity effect" rather than distortions in marginal incentives to …

welfare. This insight leads to a novel test for the optimality of unemployment insurance based on the responsiveness of … reservation wages to unemployment benefits. Some existing estimates imply significant gains to raising the current level of … unemployment benefits in the United States, but highlight the need for more research on the determinants of reservation wages. Our …

We study the optimal design of unemployment insurance for workers sampling job opportunities over time. We focus on the … absolute risk aversion preferences, a very simple policy is optimal: a constant benefit during unemployment, a constant tax … liquidity to smooth their consumption; and providing unemployment subsidies that serve as insurance against the uncertain …