Optimal unemployment policy

Nicholas Lawson

Economic Inquiry, 2023, vol. 61, issue 3, 675-692

Abstract: This paper shows that the optimal policy to deal with unemployment features important roles for monitoring of search and job search assistance, with the optimal combined policy also incorporating more generous unemployment insurance (UI). These results are significantly different from the previous literature, which has overwhelmingly focused on UI on its own. I incorporate two empirically relevant phenomena that have often been ignored: private consumption smoothing and fiscal externalities from income taxes. I estimate a job search model using indirect inference on data from the March Current Population Survey, and simulate the model to evaluate a variety of policy reforms.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ecin.13135

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecinqu:v:61:y:2023:i:3:p:675-692

Ordering information: This journal article can be ordered from
https://ordering.onl ... s.aspx?ref=1465-7295

Access Statistics for this article

Economic Inquiry is currently edited by Tim Salmon

More articles in Economic Inquiry from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().