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 …

foregone unemployment insurance about equally erode the rewards from retaining a job, or starting a new one …

This paper studies consumption and labor supply in a model where agents have partial insurance and face risk and …

-financed unemployment insurance. The key element in the analysis is that unemployment insurance is more attractive than risk shifting as a … way for workers to obtain income during unemployment. The paper also analyses the effects of risk shifting and … analysis focuses on the interaction between contractual arrangements for shifting risk from workers to employers and tax …

productivity risk is greater than the value of unemployment insurance which provides (partial) insurance against employment risk … frictions that allows us to distinguish between different sources of risk and to estimate their effects. The sources of risk are … variability due to shocks from variability due to the responses to these shocks. Estimates of productivity risk, once we control …

adjustment costs can cause a mean-preserving increase in unemployment risk to lead to increased consumption. The predictions of … risk as their unemployment shocks are more highly correlated. Such couples spend more on owner-occupied housing than other … usual relationship between risk and consumption. In particular, we present a model where the presence of plausible …

We consider both theoretically and empirically the effect of unemployment insurance (UI) on precautionary savings … the asset holdings of the median worker, and that this effect will both rise with unemployment risk and fall with worker … that UI crowds out up to one-half of private savings for the typical unemployment spell. We also find that this effect is …

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 …). Increasing diversifiable risk has social value, similar to the value of an option. Increasing nondiversifiable risk has negative …

set of contingent claims conditional on this risk …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 …