We use three general equilibrium frameworks with jobs and unemployed workers to study the effects of government … mandated unemployment insurance (UI) and employment protection (EP). To illuminate the forces in these models, we study how UI … representative family model with employment lotteries has no labour market frictions and complete markets. The adverse welfare state …

We document the presence of a trade-off between unemployment benefits (UB) and employment protection legislation (EPL …) in the provision of insurance against labour market risk. Different countries’ locations along this trade-off represent … the strictness of EPL, the generosity of UBs and the amount of redistribution involved by the financing of unemployment …

We document the presence of a trade-off between unemployment benefits (UB) and employment protection legislation (EPL …) in the provision of insurance against labour market risk. The mix of quantity restrictions and price regulations adopted … two dimensions: employment status — there are insiders and outsiders — and skills — low and high skills. We show that if …

in geographical mobility, unemployment and labour market institutions. Rational agents vote over unemployment insurance … (UI), taking the dynamic distortionary effects of insurance on the performance of the labour market into consideration … labour mobility and increases, therefore, the fraction of attached agents and the political support for UI. The main result …

Contrary to standard search model predictions, prior studies failed to estimate a positive effect of unemployment … balance between two offsetting forces: UI causes agents to seek higher-wage jobs, but also reduces wages by lengthening … unemployment. This implies a negative relationship between the UI unemployment duration and wage effects, which holds empirically …

This study examines the determinants of job-finding rates of unemployment benefit recipients under the Chilean program … the form of unemployment insurance savings accounts (UISAs) - so as to mitigate the moral hazard problem of traditional … unemployment insurance programs. Our study is the first one to empirically investigate whether UISAs improve work incentives. We …

jobs. It takes advantage of a natural experiment introduced by a change in Slovenia’s unemployment insurance law that … the post-unemployment jobs remained unaffected: the paper finds that the law change had no effect on either the type of … the contract (temporary vs. permanent), the duration of the post-unemployment jobs, or the wage earned in this job. …

This Paper analyses the design of optimal unemployment insurance in a search equilibrium framework where search effort … among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search … featuring indefinite payments of benefits and a system with a time limit on unemployment benefit receipt. The optimal sanction …

costs due to changes in the unemployment insurance system and costs due to behavioural responses of unemployed workers …This paper studies how changes in the two key parameters of unemployment insurance – the benefit replacement rate (RR …) and the potential duration of benefits (PBD) – affect the duration of unemployment. In 1989, the Austrian government made …

program that extended unemployment benefits drastically for a subset of workers in selected regions of Austria. We use non …-eligible unemployed in treated regions, and a difference-in-difference identification strategy to control for preexisting differences … unemployment duration and probability of long term unemployment decrease. These effects are the largest when the program intensity …