A significant fraction of the labor force consists of employed workers who are part-timeunemployed (underemployed) in the sense that they are unable to work as much as theyprefer. This paper develops a search and matching model to study the design of optimalunemployment insurance in an economy...

This study examines the determinants of job-finding rates of unemployment benefit recipientsunder the Chilean program. This is a unique, innovative program that combines socialinsurance through a solidarity fund (SF) with self-insurance in the form of unemploymentinsurance savings accounts...

Firms select not only how many, but also which workers to hire. Yet, in standard searchmodels of the labor market, all workers have the same probability of being hired. We arguethat selective hiring crucially affects welfare analysis. Our model is isomorphic to a searchmodel under random hiring...

The Swedish labour market and social policy is aimed at facilitating flexibility in the labourmarket. The active labour market policy and the design of the social security pension systemare two frequently mentioned examples of that policy...

This paper revisits the normative properties of search-matching economies when homogeneous workers have concave utility functions and wages are bargained over. The optimal allocation of resources is characterized first when information is perfect and second when search effort is not observable....

In this paper, we review the literature on the spike in unemployment exit rates around benefit exhaustion, and present new evidence based on administrative data for a large sample of job losers in Austria. We find that the way unemployment spells are measured has a large effect on the magnitude...

This paper studies how changes in the two key parameters of unemployment insurance – the benefit replacement rate (RR) and the potential duration of benefits (PBD) – affect the duration of unemployment. In 1989, the Austrian government made unemployment insurance more generous by changing,...

This paper studies how changes in the two key parameters of unemployment insurance – the benefit replacement rate (RR) and the potential duration of benefits (PBD) – affect the duration of unemployment. In 1989, the Austrian government made unemployment insurance more generous by changing,...

Swiss policy makers created a unique link between unemployment benefits and Active Labor Market Programs (ALMPs) by making benefit payments conditional on program attendance after 7 months of unemployment duration. We evaluate the effect of Active Labor Market Programs and benefit entitlement on...

A significant fraction of the labor force consists of employed workers who are part-time unemployed (underemployed) in the sense that they are unable to work as much as they prefer. This paper develops a search and matching model to study the design of optimal unemployment insurance in an...