Insurance-markets equilibrium with double indivisible labor supply

Aleksandar Vasilev

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: This paper describes the lottery- and insurance-market equilibrium in an economy with both private and public sector employment and non-convex labor supply. In addition, when households are constrained to search for jobs only in a certain sector, the framework requires that there should be separate insurance markets: a public- and private sector one, which would pool the unemployment risk of the corresponding group of households. The unemployment insurance market segmentation is a new result in the literature and a direct consequence of the non-convexity of the labor supply in each sector and the sorting effect of the sector-type shock introduced in the model setup.

Keywords: indivisible labor; public employment; insurance; lotteries (search for similar items in EconPapers)
JEL-codes: H31 J21 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ias
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Insurance-Markets Equilibrium with Double Indivisible Labor Supply (2015)
Journal Article: Insurance-Markets Equilibrium with Double Indivisible Labor Supply (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:144532

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