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Unemployment insurance and the labor market

Josef Zweimüller ()

No 276, ECON - Working Papers from Department of Economics - 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.

Keywords: Unemployment insurance; extended benefits; unemployment duration; unemployment inflow; layoffs; disability insurance; optimal benefits (search for similar items in EconPapers)
JEL-codes: J63 J64 J65 (search for similar items in EconPapers)
Date: 2018-01
New Economics Papers: this item is included in nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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