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Does Unemployment Insurance Affect Productivity?

Michal Soltes ()

No 2017/23, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: This study provides evidence that more generous unemployment insurance system is associated with faster growth of productivity. The results are consistent with the theory that higher social insurance allows workers to search for more suited jobs and as a result, the worker-job match is more productive (e.g. Acemoglu and Shimer (1999)). This study also discusses reasons why the observed relationship is unlikely to be explained by the fact that richer countries provide more generous unemployment insurance. Our results extend the previous literature on generosity of unemployment insurance and quality of post-unemployment worker-job match by studying the effect on aggregate productivity.

Keywords: Unemployment Insurance; TFP Growth; Generosity of Unemployment Insurance; Productivity (search for similar items in EconPapers)
JEL-codes: J65 O43 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2017-09, Revised 2017-09
New Economics Papers: this item is included in nep-eff, nep-ias and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2017_23

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