Publication: Extended unemployment benefits and early retirement: program complementarity and program substitution
Extended unemployment benefits and early retirement: program complementarity and program substitution
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Inderbitzin, L., Staubli, S., & Zweimüller, J. (2013). Extended unemployment benefits and early retirement: program complementarity and program substitution (No. 119; Working Paper Series / Department of Economics).
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This paper explores how extended unemployment insurance (UI) benefits targeted to older workers affect early retirement and social welfare. The trade-off of optimal UI between consumption smoothing and moral hazard requires accounting for the entire early retirement system, which often includes extended UI and relaxed access to disability insurance (DI). We argue that extended UI generates program complementarity (increased take-up of UI followed by DI and/or regular retirement benefits) and program substitution (increased take-up of
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Inderbitzin, L., Staubli, S., & Zweimüller, J. (2013). Extended unemployment benefits and early retirement: program complementarity and program substitution (No. 119; Working Paper Series / Department of Economics).
