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This paper extends the job creation-job destruction approach to the labor market to take into account a deterministic finite horizon. As hirings and separations depend on the time over which to recoup investment costs, the life-cycle setting implies age-differentiated labor market flows. Whereas...
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, there is a sufficiently short distance to retirement for which flat unemployment benefits can be the optimal contract. It is … show that the unemployment benefit agency could take advantage of the retirement period to tax pensions in order to …This paper shows that optimal unemployment insurance contracts are age-dependent. Older workers have only a few years …
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