Abstract
Existing theoretical models of the effects of unemployment insurance (UI) benefits on unemployment typically treat incidence and duration separately. For example, Baily (1977) and Feldstein (1976) argue that the incidence of temporary layoff unemployment increases with UI benefit liberality. Mortensen (1970; 1977) and Burdett (1979) demonstrate that the expected duration of search unemployment increases with the UI benefit payment and the potential duration of benefits. Although both results are well understood in isolation, there seems to be no formal model in the literature that allows for the effects of UI benefits on both layoff incidence and search duration simultaneously. Such a model is constructed and analysed in this paper.KeywordsUnemployment InsuranceReservation WageUnemployed WorkerUnemployment SpellUnemployment DurationThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
