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Optimal social insurance and rising labor market risk
Krebs, Tom; Scheffel, Martin - 2019
This paper analyzes the optimal response of the social insurance system to a rise in labor market risk. To this end, we … develop a tractable macroeconomic model with risk-free physical capital, risky human capital (labor market risk) and … (human capital) risk increases social welfare if the government adjusts the tax-and-transfer system optimally. Finally, we …
Persistent link: https://www.econbiz.de/10011977744
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Uncertainty and the politics of employment protection
Vindigni, Andrea (contributor) - 2008
This paper investigates the role that idiosyncratic uncertainty plays in shaping social preferences over the degree of labor market flexibility, in a general equilibrium model of dynamic labor demand where the productivity of firms evolves over time as a Geometric Brownian motion. A key result...
Persistent link: https://www.econbiz.de/10003719624
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Should UI benefits really fall over time?
Hassler, John; Rodríguez Mora, José Vicente - 2002
The issue of whether unemployment benefits should increase or decrease over the unemployment spell is analyzed in a tractable model allowing moral hazard, adverse selection and hidden saving. Analytical results show that when the search productivity of unemployed is constant over the...
Persistent link: https://www.econbiz.de/10011414504
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The role of sickness in the evaluation of job search assistance and sanctions
Berg, Gerard J. van den; Hofmann, Barbara; Uhlendorff, Arne - 2016
Unemployment insurance agencies may combat moral hazard by punishing refusals to apply to assigned vacancies. However, the possibility to report sick creates an additional moral hazard, since during sickness spells, minimum requirements on search behavior do not apply. This reduces the ex ante...
Persistent link: https://www.econbiz.de/10011449662
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The simple analytics of job displacement insurance
Parsons, Donald O. - 2016
and in combination, introduce potentially serious contracting concerns. Economic theory provides a practical guide to the …
Persistent link: https://www.econbiz.de/10011455569
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Moral-hazard-free first-best unemployment insurance
Parsons, Donald O. - 2016
Unemployment insurance replacement rates world-wide are well below 100 percent, a fact often attributed to search moral hazard concerns. As Blanchard and Tirole (2008) have illustrated, however, neither search nor layoff moral hazard (firing cost) distortions need arise in first-best insurance...
Persistent link: https://www.econbiz.de/10011455570
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Universal basic income versus unemployment insurance
Fabre, Alice; Pallage, Stéphane J.; Zimmermann, Christian - 2014
In this paper we compare the welfare effects of unemployment insurance (UI) with a universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should do...
Persistent link: https://www.econbiz.de/10010440540
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Second-degree moral hazard in a real-world credence goods market
Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2013
Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard - the tendency of the supply...
Persistent link: https://www.econbiz.de/10010207314
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Understanding severance pay
Parsons, Donald O. - 2013
Severance pay, a fixed-sum payment to workers at job separation, has been the focus of intense policy concern for the last several decades, but much of this concern is unearned. The design of the ideal separation package is outlined and severance pay emerges as a natural component of job...
Persistent link: https://www.econbiz.de/10010195446
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Misappropriation of R&D Subsidies: estimating treatment effects with one-sided noncompliance
Boeing, Philipp; Peters, Bettina - 2021
In evaluating the effectiveness of R&D subsidies, the literature has focused on potential crowding out effects, while the possibility of misappropriation of public funds that results from moral hazard behavior has been completely neglected. This study develops a theoretical framework with which...
Persistent link: https://www.econbiz.de/10012698645