Labor Market Effects of Unemployment Insurance Design

42 Pages Posted: 27 Oct 2012

See all articles by Konstantinos Tatsiramos

Konstantinos Tatsiramos

University of Luxembourg; Luxembourg Institute of Socio-Economic Research (LISER)

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

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Abstract

With the emergence of the Great Recession unemployment insurance (UI) is once again at the heart of the policy debate. In this paper, we review the recent theoretical and empirical evidence on the labor market effects of UI design. We also discuss policy issues related to UI design, including the structure of benefits, the role of liquidity constraints and the pros and cons of a UI system in which the generosity of UI benefits is varying over the business cycle. Finally, we identify potential areas of future research.

Keywords: unemployment insurance, unemployment dynamics, job search, labor market policy, labor market institutions

JEL Classification: J64, J65, J68

Suggested Citation

Tatsiramos, Konstantinos and van Ours, Jan C., Labor Market Effects of Unemployment Insurance Design. IZA Discussion Paper No. 6950. Available at SSRN: https://ssrn.com/abstract=2167572

Konstantinos Tatsiramos (Contact Author)

University of Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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