-averse unemployed individual, who receives an unemployment insurance benefit and may receive a recall from the old job, to exit from a … waiting (and hence unemployment) state and start a new job. It is shown that as a result of the individual's exercising the … optimal timing strategy, there is a duration of “waiting” and that this duration is affected by a number of economic factors …

). Building on a unique feature of the unemployment policy in Sweden, where workers can opt for supplemental UI coverage above a …This paper studies whether adverse selection can rationalize a universal mandate for unemployment insurance (UI …. We fi nd that the unemployment risk is more than twice as high for workers who buy supplemental coverage, even when …