. Adjustment costs of changing benefits can introduce hysteresis in benefit setting and unemployment. Both (very) bad and good … unemployment benefits in response to an unemployment shock in a simple, reduced-form model of the labor market. It is found that … temporary shocks (including monetary) can permanently reduce unemployment benefits and the unemployment rate. A desirable …

aspects: incidence, severity and hysteresis. Incidence refers to the conventional unemployment rate; severity takes in both … unemployment duration and the associated income loss; and hysteresis refers to the probability of remaining unemployed. The social … loss, unemployment duration and hysteresis. The resulting formula is simple and easy to understand and implement. We apply …

unemployment, their lifetime use of the system increases. This supply side hysteresis effect may explain why unemployment has …This paper presents results from a 1971 natural experiment carried out by the Canadian government on the unemployment … steadily increased over the 1972-1992 period, even though the generosity of unemployment insurance did not …

labor market and the government's decision to set unemployment benefits in response to an unemployment shock. The government … effects whereby benefits increase unemployment. It is found that when an adverse shock occurs, benefits should be increased … most when the adverse incentive effects of benefits are largest. Adjustment costs of changing benefits introduce hysteresis …