Social insurance and transition

Andrew Atkeson and Patrick Kehoe

No 202, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: We study the general equilibrium effects of social insurance on the transition in a model in which the process of moving workers from matches in the state sector to new matches in the private sector takes time and involves uncertainty. As to be expected, adding social insurance to an economy without any improves welfare. Contrary to standard intuition, however, adding social insurance may slow transition. We show that this result depends crucially on general equilibrium interactions of interest rates and savings under alternative market structures.

Keywords: Public; policy (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Social Insurance and Transition (1996)
Working Paper: Social insurance and transition (1995)
Working Paper: Social Insurance and Transition (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:202

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