General Equilibrium Effects of Unemployment Compensation with Labor Force Participation

Michael Sattinger

Journal of Labor Economics, 1995, vol. 13, issue 4, 623-52

Abstract: This article examines the effects of unemployment compensation when the size of the labor force depends on unemployment benefits. The analysis is based on an aggregate model with search and matching in which unemployment compensation affects the wage determination process and the number of jobs and workers. As with partial equilibrium models, unemployment compensation raises the unemployment rate and the ratio of unemployed to vacancies. However, wages may go up or down and firms may be better-off. Generally, employed workers are worse-off. Unemployment compensation transfers income from employed factors to unemployed factors, leading to greater input levels. Copyright 1995 by University of Chicago Press.

Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://dx.doi.org/10.1086/298387 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.

Related works:
Working Paper: General Equilibrium Effects of Unemployment Compensation with Labor Force Participation (1993)
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:ucp:jlabec:v:13:y:1995:i:4:p:623-52

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().