We consider an economy characterised by involuntary unemployment among low skilled workers, and investigate the … implications for employment and income of welfare schemes often advocated as less distortionary. We show that reducing unemployment … deterioration. To support employment, we suggest that systems grounded in contribution-based unemployment insurance schemes are to …

This paper studies the unemployment accelerator, a mechanism where workers directly affect the firms' financial … conditions, and, in turn, firms' financial conditions feedback again to the real economy. The unemployment accelerator builds on … in labor and financial markets. We provide compelling micro-evidence of the unemployment accelerator: a 10% increase in a …

In this paper we compare the welfare effects of unemployment insurance (UI) with an universal basic income (UBI) system … shocks. While the unemployment insurance program should do a better job at protecting the unemployed, it suffers from moral …

We study asset-tested unemployment insurance in an incomplete markets model with moral hazard during job search. Asset … incentive to save and fewer private resources are used for consumption smoothing during unemployment. Our results show that in a … time-discount factors. We conclude that the current U.S. unemployment insurance system is approximately optimal …

Several European countries have reformed their labor market institutions. Incentive effects of unemployment benefits … have been an important aspect of these reforms. We analyze this issue in a principal-agent model, focusing on unemployment … levels and labor productivity. In our model, a higher level of unemployment benefits improves the works position in wage …

unemployment benefits reduce unemployment? Using a recent labour market reform in Germany as background, we find that an enhanced … effectiveness of the PEA explains about 20% of the observed post-reform unemployment decline. The role of unemployment benefit … the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long …

, causing both unemployment and excessive value added in exports. Moreover, excessive wages induce too much outsourcing of …

In this paper we compare the welfare effects of unemployment insurance (UI) with an universal basic income (UBI) system … shocks. While the unemployment insurance program should do a better job at protecting the unemployed, it suffers from moral …

We study asset-tested unemployment insurance in an incomplete markets model with moral hazard during job search. Asset … incentive to save and fewer private resources are used for consumption smoothing during unemployment. Our results show that in a … time-discount factors. We conclude that the current U.S. unemployment insurance system is approximately optimal. …