This paper presents new evidence on why unemployment insurance (UI) benefits affect search behavior and develops a … unemployment durations caused by UI benefits is due to a quot;liquidity effectquot; rather than distortions in marginal incentives …

welfare. This insight leads to a novel test for the optimality of unemployment insurance based on the responsiveness of … reservation wages to unemployment benefits. Some existing estimates imply significant gains to raising the current level of … unemployment benefits in the United States, but highlight the need for more research on the determinants of reservation wages. Our …

unemployment benefits on the duration of joblessness in Austria, and discuss implementation issues that may arise in similar …

set of contingent claims conditional on this risk.We use the model to evaluate a tax-financed unemployment insurance … stochastic ones---generate rather limited unemployment effects, unless workers are close to indifferent between working and not …

This paper tests the effects of the level and length of unemployment insurance (UI) benefits on unemployment durations … are found to have a strong negative effect on the probability of leaving unemployment. However, the probability of leaving … unemployment rises dramatically just prior to when benefits lapse. When the length of benefits is extended, the probability of a …

We study the optimal design of unemployment insurance for workers sampling job opportunities over time. We focus on the … absolute risk aversion preferences, a very simple policy is optimal: a constant benefit during unemployment, a constant tax … liquidity to smooth their consumption; and providing unemployment subsidies that serve as insurance against the uncertain …

Before 1979, unemployment insurance (UI) benefits were not treated as taxable income in the United States. Several … has had the predicted effect of reducing unemployment duration.The study uses data on a sample of persons that filed for … presents persuasive evidence of a tax effect on unemployment duration. The 1979 policy change is estimated to have reduced …

We study how the level of unemployment insurance (UI) benefits that trades off the consumption smoothing benefit with … moral hazard cost is procyclical, greater when the unemployment rate is relatively low. By contrast, our evidence suggests … standard deviation increase in the unemployment rate leads to a roughly 14 to 27 percentage point increase in the welfare …

This paper analyzes a social insurance system that integrates unemployment insurance with a pension program through an … individual account, allowing workers to borrow against their future wage income to finance consumption during an unemployment …-funded unemployment insurance program. We show that when the duration of unemployment is very short compared to the period of employment …

of higher unemployment insurance benefits, individuals who filed just before and just after sixteen benefit increases are … period of unemployment insurance receipt by about one week. This effect is precisely estimated and found using several … approaches. the incidence of layoffs resulting in unemployment insurance claims is unaffected by the increases. The evidence does …