Benefit Reentitlement Conditions in Unemployment Insurance Schemes

Torben M. Andersen (), Mark Strom Kristoffersen () and Michael Svarer
Additional contact information
Torben M. Andersen: Aarhus University
Mark Strom Kristoffersen: Aarhus University

No 8991, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Unemployment insurance schemes include conditions on past employment history as part of the eligibility conditions. This aspect is often neglected in the literature which primarily focuses on benefit levels and benefit duration. In a search-matching framework we show that benefit duration and employment requirements are substitute instruments in affecting job search incentives and thus gross unemployment. We analyse the optimal design of the unemployment insurance system (benefit levels, duration and employment requirements) under a utilitarian social welfare function. Simulations show that a higher insurance motive captured by more risk aversion implies higher benefit generosity and more lax employment requirements but also shortened benefit duration.

Keywords: unemployment insurance; reentitlement effects; business cycle (search for similar items in EconPapers)
JEL-codes: E32 H3 J65 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2015-04
New Economics Papers: this item is included in nep-dge, nep-ias, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Labour Economics, 2018, 52, 27-39

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Related works:
Journal Article: Benefit reentitlement conditions in unemployment insurance schemes (2018)
Working Paper: Benefit reentitlement conditions in unemployment insurance schemes (2018)
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