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Unemployment insurance and the labor market


Zweimüller, Josef (2018). Unemployment insurance and the labor market. Working paper series / Department of Economics 276, University of Zurich.

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.

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.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:J65, J63, J64
Uncontrolled Keywords:Unemployment insurance, extended benefits, unemployment duration, unemployment inflow, layoffs, disability insurance, optimal benefits
Language:English
Date:January 2018
Deposited On:02 Feb 2018 10:18
Last Modified:31 Jul 2018 04:02
Series Name:Working paper series / Department of Economics
Number of Pages:32
ISSN:1664-7041
OA Status:Green
Official URL:http://www.econ.uzh.ch/static/wp/econwp276.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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