Search, self-insurance and job-security provisions
Fernando Alvarez and
No WP-98-2, Working Paper Series from Federal Reserve Bank of Chicago
We construct a general equilibrium model to evaluate the quantitative effects of severance payments in the presence of contracting and reallocational frictions. Key elements of the model are: 1) establishment level dynamics, 2) imperfect insurance markets, and 3) variable search decisions. Contrary to previous studies that analyzed severance payments in frictionless environments, we find that severance payments reduce unemployment, produce negative insurance effects and improve levels.
Keywords: Job security; Unemployment (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed
Downloads: (external link)
http://www.chicagofed.org/digital_assets/publicati ... pers/1998/wp98_2.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.chicagofed.org/digital_assets/publications/working_papers/1998/wp98_2.pdf [301 Moved Permanently]--> https://www.chicagofed.org/digital_assets/publications/working_papers/1998/wp98_2.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedhwp:wp-98-2
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Paper Series from Federal Reserve Bank of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by ().