Download This PaperUnemployment Insurance and the Labor Market
University of Zurich, Department of Economics, Working Paper No. 276
34 Pages Posted: 10 Feb 2018
Date Written: January 31, 2018
Abstract
The existing literature assumes that unemployment insurance (UI) affects the labor market through the job finding rate of eligible workers. I argue that this focus is too narrow. I show evidence for UI effects through three other margins: (i) search externalities; (ii) takeup of other welfare state programs; and (iii) job separations. This suggests that the analysis of optimal UI should take a more comprehensive view of how UI affects the labor market.
Keywords: Unemployment insurance, extended benefits, unemployment duration, unemployment inflow, layoffs, disability insurance, optimal benefits
JEL Classification: J65, J63, J64
Suggested Citation: Suggested Citation
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