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In most countries, the unemployed are entitled to unemployment benefits only if they have previously worked a minimum period of time. This institutional feature creates a sharp change at eligibility in the disutility from unemployment and may distort the duration of jobs. In this paper, we...
Persistent link: https://www.econbiz.de/10011543815
The well-known positive relationship between the unemployment benefit level and unemployment duration can be separated into two potential sources; a moral hazard effect, and a liquidity effect pertaining to the increased ability to smooth consumption. The latter is a socially optimal response...
Persistent link: https://www.econbiz.de/10011951926
In this paper, I explore how optimal aggregate dynamics can be shaped by the presence of moral hazard in unemployment insurance. I also analyze the optimal provision of unemployment insurance and the implications for the amount of cross-sectional heterogeneity. The economy that I consider embeds...
Persistent link: https://www.econbiz.de/10012887595
Persistent link: https://www.econbiz.de/10012001840
The unemployment protection systems that exist in most Latin American economies are generally considered inadequate in terms of providing insurance to workers. They may also encourage stratified labor markets and impose barriers to the employee's mobility and the firm's adjustment to changing...
Persistent link: https://www.econbiz.de/10010278335
Persistent link: https://www.econbiz.de/10011855287
. This paper investigates the importance of incentives inherent in the tax-benefit system for the individual decision to take … up work. Using German microdata over the period 1993 - 2010 we find that recent reforms in Germany increased work … incentives at the extensive margin measured by the Participation Tax Rate (PTR), particularly for low income individuals. Work …
Persistent link: https://www.econbiz.de/10011299149
. This paper investigates the importance of incentives inherent in the tax-benefit system for the individual decision to take … up work. Using German microdata over the period 1993-2010 we find that recent reforms in Germany increased work … incentives at the extensive margin measured by the Participation Tax Rate (PTR), particularly for low-income individuals. Work …
Persistent link: https://www.econbiz.de/10011295803
incentives for the lowskilled and to increase durations of unemployment. Standard studies measure work incentives based on annual … income concepts. This paper analyzes work incentives inherent in the German tax-benefit system when extending the time …
Persistent link: https://www.econbiz.de/10010221556
This paper shows that optimal unemployment insurance contracts are age-dependent. Older workers have only a few years left on the labor market prior to retirement. This short horizon implies a more digressive replacement ratio. However, there is a sufficiently short distance to retirement for...
Persistent link: https://www.econbiz.de/10010269168