We study the effects of front-loading the payment of unemployment benefits in an equilibrium matching framework with precautionary savings. Front-loading the benefit system trades off fewer means to smooth consumption at long unemployment durations for improved insurance upon job loss. In the...

We analyze the effects of government-mandated severance payments in a rich life-cycle model with search-matching frictions in the labor market, risk-averse agents and imperfect insurance against idiosyncratic shocks. Our model emphasizes a tension between worker-firm wage bargains and...

Economies with low unemployment often have high disability rates. In Norway, the permanent disability insurance rolls outnumber registered unemployment by four to one. Based on administrative register data matched with firms' financial statements and closure data collected from bankruptcy...

Economies with low unemployment often have high disability rates. In Norway, the permanent disability insurance rolls outnumber registered unemployment by four to one. Based on administrative register data matched with firms' financial statements and closure data collected from bankruptcy...

In response to the COVID-19 pandemic, Congress expanded unemployment insurance (UI) benefits in three ways. First, it increased the level of benefits through a $600 and then a $300 per week supplement. Second, it expanded the pool of workers who are eligible to receive UI via the Pandemic...

In response to the COVID-19 pandemic, the U.S. government implemented the largest expansion in eligibility to federal Unemployment Insurance (UI) benefits in history through the creation of the Pandemic Unemployment Assistance (PUA) program. This program expanded eligibility to self-employed...

During the Covid-19 pandemic, unemployment insurance (UI) benefits have taken on an unprecedented role in the United States economy. In May 2020, total UI benefits were equal to 14.6 percent of total wages, more than five times the Great Recession peak. This is due to two factors: first, the...

This paper explores how the introduction of an experience rated system of unemployment insurance affects employment and welfare in a model where implicit contracts between firms and workers give rise to wage rigidities and unemployment. In the literature, it has been argued that experience rated...