The Unemployment Insurance (UI) system in the United States has played a decisive lifeline role in effectively mitigating the economic and social impact of the Covid-19 pandemic, which prompted the largest expansion of UI programs in history, one that is unprecedented in scope, scale and cost....

The public sector hires disproportionately more educated workers. To rationalize this finding, we propose a model with a perfectly competitive private sector, and non-Walrasian public sector. Our economy also features heterogeneity across individuals and jobs, and a simple sorting mechanism that...

In order to have an impact on the labor market, welfare states must implement active labor market policies (ALMPs). The effectiveness of ALMPs has only been the subject of a few numbers of studies, the majority of which only take into account the short-term effects of ALMPs and use aggregate...