Staying on the Dole
Holger Strulik (),
Jean-Robert Tyran () and
No 06-18, Discussion Papers from University of Copenhagen. Department of Economics
We develop a simple model of short- and long-term unemployment to study how labor market institutions interact with labor market conditions and personal characteristics of the unemployed. We analyze how the decision to exit unemployment and to mitigate human capital degradation by retraining depends on education, skill degradation, age, labor market tightness, taxes, unemployment insurance benefits and welfare assistance. We extend our analysis by allowing for time-inconsistent choices and demonstrate the possibility of an unemployment trap.
Keywords: unemployment; skill degradation; retraining; unemployment benefits; welfare assistance; present-biased preferences (search for similar items in EconPapers)
JEL-codes: J64 J31 J38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-hrm, nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Staying on the Dole (2007)
Working Paper: Staying on the Dole (2006)
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:kud:kuiedp:0618
Access Statistics for this paper
More papers in Discussion Papers from University of Copenhagen. Department of Economics Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().