Unemployment Insurance and Workers' Mobility

Jan Boone

Journal of Institutional and Theoretical Economics (JITE), 2004, vol. 160, issue 2, 275-293

Abstract: This paper analyses the effects of unemployment insurance (UI) in a model with two sectors where one sector is more risky than the other, in the sense that the probability of becoming unemployed is higher. With risk-averse agents it is the case that, over a range of values of UI, increasing UI increases workers' mobility from the safe to the risky sector, thereby increasing both unemployment and income.

JEL-codes: H53 J31 J60 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (4)

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