The adverse effect of unemployment insurance on workers’ on-the-job effort and labor market outcomes

Kunio Tsuyuhara

Economics Letters, 2016, vol. 147, issue C, 83-85

Abstract: I investigate the effect of unemployment insurance on worker on-the-job effort and its macroeconomic impacts. The results show that a moderate increase in unemployment benefits decreases the average wage and employment duration, and aggregate output, and increases average layoff rate.

Keywords: Unemployment insurance; Work incentive; Moral hazard; Directed search (search for similar items in EconPapers)
JEL-codes: E2 J3 J6 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176516303007
Full text for ScienceDirect subscribers only

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:eee:ecolet:v:147:y:2016:i:c:p:83-85

DOI: 10.1016/j.econlet.2016.08.004

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().