Coles, M and Masters, A (2006) Re-entitlement Effects with Duration Dependent Unemployment Insurance in a Stochastic Matching Equilibrium. UNSPECIFIED. Society for Economic Dynamics 2006 Meeting Papers 189.
Coles, M and Masters, A (2006) Re-entitlement Effects with Duration Dependent Unemployment Insurance in a Stochastic Matching Equilibrium. UNSPECIFIED. Society for Economic Dynamics 2006 Meeting Papers 189.
Coles, M and Masters, A (2006) Re-entitlement Effects with Duration Dependent Unemployment Insurance in a Stochastic Matching Equilibrium. UNSPECIFIED. Society for Economic Dynamics 2006 Meeting Papers 189.
Abstract
In the context of a standard equilibrium matching framework, this paper considers how a duration dependent unemployment insurance (UI) system affects the dynamics of unemployment and wages in an economy subject to stochastic job-destruction shocks. It establishes that re-entitlement effects induced by a finite duration UI program generate intertemporal transfers from firms that hire in future booms to firms that hire in current recessions. These transfers imply a net hiring subsidy in recessions which stabilizes unemployment levels over the cycle
| Item Type: | Monograph (UNSPECIFIED) |
|---|---|
| Uncontrolled Keywords: | Matching frictions; Unemployment; Duration Dependent UI |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 05 Jan 2013 19:18 |
| Last Modified: | 06 Jan 2022 13:20 |
| URI: | http://repository.essex.ac.uk/id/eprint/4906 |