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Unemployment insurance provides temporary cash benefits to eligible unemployed workers. Benefits are sometimes extended by discretion during economic slumps. In a model that features temporary benefits and sequential job opportunities, a worker's reservation wages are studied when policymakers...
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This paper exploits the informational value of search theory, after Lancaster and Chesher (1983), in conjunction with survey data on the unemployed to calculate key reservation wage and duration elasticities for most EU-15 nations.
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