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We derive the shape of optimal unemployment insurance (UI) contracts when agents can exert search effort but face different search costs and have private information about their type. We derive a recursive solution of our dynamic adverse selection problem with repeated moral hazard. Conditions...
Persistent link: https://www.econbiz.de/10010519045
This paper provides a review of the recent literature on how incentives in unemployment insurance (UI) can be improved. We are particularly concerned with three instruments, viz. the duration of benefit payments (or more generally the time sequencing of benefits), monitoring in conjunction with...
Persistent link: https://www.econbiz.de/10011507749
This paper analyses crucial design features of unemployment insurance (UI) policies. We examine three different means of improving the efficiency of UI: the duration of benefit payments, monitoring in conjunction with sanctions, and workfare. To that end we develop a quantitative model of...
Persistent link: https://www.econbiz.de/10011509411
react to this constraint. Standard job search theory predicts that requirements affect each job seeker relative to her … search theory. …
Persistent link: https://www.econbiz.de/10010502718
This paper analyzes the design of optimal unemployment insurance in a search equilibrium framework where search e¤ort among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search effort and benefit sanctions if observed search is...
Persistent link: https://www.econbiz.de/10011408413
random assignment of job seekers to caseworkers. We find that the duration of un- and non- employment both decrease by 3% if …, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find … small negative effects on job stability, reducing the duration of re- employment spells by 0.3% per required application. We …
Persistent link: https://www.econbiz.de/10011902999
random assignment of job seekers to caseworkers. We find that the duration of un- and non-employment both decrease by 3% if …, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find … small negative effects on job stability, reducing the duration of re-employment spells by 0.3% per required application. We …
Persistent link: https://www.econbiz.de/10011892543
affecting the incentive to search for formal employment. We find that increasing benefit generosity makes job seekers less …
Persistent link: https://www.econbiz.de/10011761509
The generosity of social insurance coverage often increases with the beneficiary's age and their contribution time to social security, but existing policies vary considerably. We study the differentiation of unemployment insurance (UI) generosity by evaluating how the insurance incentive...
Persistent link: https://www.econbiz.de/10014383767
The generosity of social insurance coverage often increases with the beneficiary's age and their contribution time to social security, but existing policies vary considerably. We study the differentiation of unemployment insurance (UI) generosity by evaluating how the insurance-incentive...
Persistent link: https://www.econbiz.de/10014388453