Rising UI Benefits over Time

Tomer Blumkin () and Efraim Sadka ()
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Tomer Blumkin: Department of Economics,Ben-Gurion University of the Negev
Efraim Sadka: The Eitan Berglas School of Economics, Tel Aviv University

No 807, Working Papers from Ben-Gurion University of the Negev, Department of Economics

Abstract: We re-examine a key result in the optimal UI literature that benefits should decline over time. We show that when the population is heterogeneous, Pareto-efficiency may call for multiple payment schedules, some with benefits that fall over time and some with benefits that rise over time.

Keywords: Optimal Taxation; Re-distribution; Unemployment Insurance; Inequality (search for similar items in EconPapers)
JEL-codes: D6 H2 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:bgu:wpaper:0807

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