On Voters' Attitudes Towards Unemployment Insurance Subsidies across Regions: A Canadian Simulation
Stephane Pallage () and
Christian Zimmermann ()
No 2004-34, Working papers from University of Connecticut, Department of Economics
The Canadian unemployment insurance program is designed to reflect the varying risk of joblessness across regions. Regions that are considered low-risk areas subsidize higher risk ones. A region's risk is typically proxied by its relative unemployment rate. We use a dynamic, heterogeneous-agent model calibrated to Canada to analyze voters preferences between a uniformly generous unemployment insurance and the current system with asymmetric generosity. We find that Canada's unusual unemployment insurance system is surprisingly close to what voters would choose in spite of the possibilities of moral hazard and self-insurance through asset build-up.
Keywords: Unemployment insurance; moral hazard; shirking; heterogeneous agents; voting; redistribution. (search for similar items in EconPapers)
JEL-codes: E24 D7 D58 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-cmp, nep-dge, nep-ias and nep-pol
Note: This paper was presented at the 2003 meeting of the European Society for Population Economics at NYU, the 2003 Montreal Macro Workshop, the 2003 meeting of the Society for Economic Dynamics in Paris, and the Midwest Macro Conference at Iowa State University. We gratefully acknowledge financial support from FCAR/FQRSC.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://web2.uconn.edu/economics/working/2004-34.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:uct:uconnp:2004-34
Access Statistics for this paper
More papers in Working papers from University of Connecticut, Department of Economics University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063. Contact information at EDIRC.
Series data maintained by Mark McConnel ().