Unemployment Insurance with Response Heterogeneity

Conny Wunsch and Véra Zabrodina ()
Additional contact information
Véra Zabrodina: University of Basel

Working papers from Faculty of Business and Economics - University of Basel

Abstract: The generosity of social insurance coverage often increases with the beneficiary's age and their contribution time to social security, but existing policies vary considerably. We study the differentiation of unemployment insurance (UI) generosity by evaluating how the insurance-incentive trade-off varies with age and contribution time. We exploit numerous discontinuities in potential benefit duration in Germany. Contribution time in the last three years carries information on job search efforts, as it is associated with lower moral hazard responses and fiscal externality. We find no significant response heterogeneity in age or longer contribution time horizons. Contrasting these gradients with an approximated insurance value for four UI regimes, we document that steepening the potential benefit duration schedule in contribution time and flattening it in age would have increased welfare.

Keywords: Unemployment insurance; response heterogeneity; policy dierentiation (search for similar items in EconPapers)
JEL-codes: J08 J64 J65 (search for similar items in EconPapers)
Date: 2023-10-06
New Economics Papers: this item is included in nep-dge
References: Add references at CitEc
Citations:

Downloads: (external link)
https://edoc.unibas.ch/96019/1/2023_08_Unemploymen ... %20Heterogeneity.pdf (application/pdf)

Related works:
Working Paper: Unemployment Insurance with Response Heterogeneity (2023)
Working Paper: Unemployment Insurance with Response Heterogeneity (2023)
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:bsl:wpaper:2023/08

Access Statistics for this paper

More papers in Working papers from Faculty of Business and Economics - University of Basel Contact information at EDIRC.
Bibliographic data for series maintained by WWZ ().