The main objective of passive employment policies is to guarantee a certain level of consumption and well-being for … passive employment policies consist of cash transfers for unemployed people. From a cyclical point of view, unemployment … countries) and, in some cases, increase savings, especially in the long term. [...] …

that a decrease of say unemployment probability or an increase in unemployment insurance (UI) generosity affects saving not … savings while a decreased variation in earnings decrease saving. Not accounting for the effect on expected earnings on saving …

risks. Without income insurance, consumption rises during employment and falls during unemployment. Optimal employment …This paper derives optimal employment contracts when workers are risk averse and there are employment and unemployment … contracts offer severance compensation and sometimes give notice before dismissal. Severance compensation smoothes consumption …