This paper studies optimal unemployment bene…fit levels and optimal proportional income tax rates over the business … cycle. Previous research suggests that policy makers should make unemployment insurance (UI) dependent on the business cycle … unemployment. An alternative way to redistribute income is to vary tax rates over the business cycle. In this paper, we develop an …

This paper studies optimal unemployment benefit levels and optimal proportional income tax rates over the business … cycle. Previous research suggests that policy makers should make unemployment insurance (UI) dependent on the business cycle … unemployment. An alternative way to redistribute income is to vary tax rates over the business cycle. In this paper, we develop an …

Should unemployment compensation be paid indefinitely at a fixed rate or should it decline (or increase) over a worker …’s unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features worker … optimal insurance program implies a declining sequence of unemployment compensation over the spell of unemployment. Numerical …

-person families receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment …

previous jobs, and thus much more than they get in unemployment benefits. However, our results also show that some groups, such … demands may contribute to high unemployment. …

receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment insurance …

Should unemployment compensation be paid indefinitely at a fixed rate or should it decline (or increase) over a worker …'s unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features worker … optimal insurance program implies a declining sequence of unemployment compensation over the spell of unemployment. …

Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral … with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i ….e., unemployment benefits relative to after-tax earnings. When home production is an option, the conventional results may no longer …

unemployment has a weak positive effect on the probability of filling a vacancy, while the number of vacancies in the local labor … estimation, show economically significant effects of shocks to the number of vacancies on employment dynamics, while shocks to …