This paper studies the optimal unemployment insurance for older workers in a repeated principal-agent model, where the …). When unemployment benefits are the only available tool, the insurance agency is not able to induce older workers to search … for a job. This is because of the short time-horizon of workers close to retirement. We propose to introduce a pension tax …

. Finally, even in the special case where search intensity is zero close to retirement, perfect risk-sharing across unemployment …At the end of working life, as well as reducing unemployment benefits, the unemployment-insurance agency could apply …-free. Second, the short job duration before retirement implies that the budgetary return and search incentives associated with the …