The paper presents a model that allows a unified analysis of sickness absence and search unemployment. Sickness appears … benefits affect individual decisions on absence and search and the implications for employment, unemployment and …

Should unemployment compensation be paid indefinitely at a fixed rate or should it decline (or increase) over a worker …'s unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features worker … optimal insurance program implies a declining sequence of unemployment compensation over the spell of unemployment. Numerical …