This paper argues that unemployment insurance increases labor productivity by encouraging workers to seek higher … whether this effect is comparable in magnitude to the standard moral hazard effects of unemployment insurance. Our model … economy captures the behavior of the U.S. labor market for high school graduates quite well. When unemployment insurance …

This paper argues that unemployment insurance increases labor productivity by encouraging workers to seek higher … whether this effect is comparable in magnitude to the standard moral hazard effects of unemployment insurance. Our model … economy captures the behavior of the U.S. labor market for high school graduates quite well. When unemployment insurance …

This paper argues that unemployment insurance increases labor productivity by encouraging workers to seek higher … whether this effect is comparable in magnitude to the standard moral hazard effects of unemployment insurance. Our model … economy captures the behavior of the U.S. labor market for high school graduates quite well. When unemployment insurance …

number of good jobs. Minimum wages and unemployment insurance encourage workers to wait for higher wages and therefore induce … increase unemployment, will increase average labor productivity and may improve welfare. The paper then briefly investigates … improves considerably in response to higher minimum wages and more generous unemployment benefits …