uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …We consider a simple, two period, consumption-savings model with future income uncertainty that examines the interplay … present bias. We predict, and show empirically, that loss aversion reduces savings, and that those who are more loss averse …

This paper studies how the potential duration of unemployment benefits affects individuals' job search behavior and re …-employment outcomes. We exploit an unexpected reform of the German unemployment insurance scheme in 2008, which increased the potential … over the first two months of unemployment. Treatment effects on the reservation wage are positive but statistically …

A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor … 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates … causally link our empirical findings to the reduction in long-term unemployment benefits using a heterogeneous-agent labor …

We estimate impacts of male job loss, female job loss, and male unemployment benefits on domestic violence in Brazil … pervasive increases in domestic violence. Exploiting a discontinuity in unemployment insurance eligibility, we find that … and an increase in exposure of victims to perpetrators, with unemployment benefits partially offsetting the income shock …

makes the consequences of unemployment less severe. We evaluate a two-part policy reform in Belgium to study whether … conditioning the prospective entitlement to unemployment benefits for education-leavers on age or schooling attainment can affect … educational achievements. The results show that the prospect of financial loss in case of unemployment can significantly raise …

We assess to which degree an international transfer mechanism can enhance consumption risk sharing as well as … allocative efficiency and apply our results to the implicit transfers generated by a potential European unemployment benefit … analyze the changing dynamics that a EUBS brings about. We find that a EUBS can provide risk sharing by stabilizing relative …

the design of optimal unemployment insurance in an economy with unemployment as well as part-time unemployment. Part …-time unemployment provides income insurance and serves as a stepping stone to full-time jobs. Unemployment benefits for part …-timers increase the outflow from unemployment to part-time work but reduce the outflow from part-time work to fulltime employment. We …

the labor market. We show that equilibrium entails wage dispersion among equally productive risk-averse workers. Marital … receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment insurance …

programme when they take into account that workfare is a condition for remaining eligible for unemployment benefits. This … outside option becomes less attractive. Introduction of workfare policies into an unemployment insurance scheme is shown to … contribute to a reduction in both open and total unemployment. It is also shown that the direct search effects of workfare …