Blanchard, Olivier J.; Tirole, Jean - In: Journal of the European Economic Association 6 (2008) 1, pp. 45-77
Unemployment insurance and employment protection are typically discussed and studied in isolation. In this paper, we argue that they are tightly linked, and we focus on their joint optimal design in a simple model, with risk-averse workers, risk-neutral firms, and random shocks to productivity....
