The aim of this paper is to study the optimal time for the individual to join an unemployment insurance scheme which is intended to protect workers against the consequences of job loss and to encourage the unemployed workers to find a new job as early as possible. The wage dynamic is described...

In this paper we compare the welfare effects of unemployment insurance (UI) with an universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should...