Optimal state-contingent unemployment insurance

Juan Sanchez

Economics Letters, 2008, vol. 98, issue 3, 348-357

Abstract: Since the probability of finding a job is affected not only by individual effort but also by the aggregate state of the economy, designing unemployment insurance schemes conditional on the business cycles could be valuable. This paper answers a fundamental question related to this issue: How should the payments vary with the aggregate state of the economy?

Date: 2008
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Working Paper: Optimal State-Contingent Unemployment Insurance (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:98:y:2008:i:3:p:348-357

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