Some Further Notes on the Role of the UI System
Chapter Chapter 6 in Modelling Unemployment Insurance, 2022, pp 151-162 from Springer
Abstract The chapter considers a number of selected empirical analyses that produce very different results on the effects of UI systems on post-unemployment jobs. These results are used to introduce the scheme of Nekoei and Weber, which provides analytical reasons for opposing empirical results about job quality at re-employment. A directed-search model with duration dependence designs here two opposing forces that impact re-employment job quality, identified with re-employment wages. The operation of these forces can reconcile the divergent empirical results. The comments emphasize the interest of the analytical findings for the issue of the broad role of UI systems and for clarifying the importance of the very heterogeneous components of the labour market in determining local effects of the UI action.
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