In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker s influence, while the re-employment chance is directly affected by search effort. We characterize the worker s optimal savings and job-search...

In this paper, we estimate the effect of workfare policy on crime by exploiting two exogenous welfare policy changes in Denmark. Our results show a strong decline in the crime rate among treated unemployment uninsured men relative to untreated uninsured and unemployment insured men, and part of...

In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker`s influence, while the reemployment chance is directly affected by search effort. We characterize the worker`s optimal savings and jobsearch...