Coles, Melvyn and Masters, Adrian (2007) Re-entitlement effects with duration-dependent unemployment insurance in a stochastic matching equilibrium. Journal of Economic Dynamics and Control, 31 (9). pp. 2879-2898. DOI https://doi.org/10.1016/j.jedc.2006.09.011
Coles, Melvyn and Masters, Adrian (2007) Re-entitlement effects with duration-dependent unemployment insurance in a stochastic matching equilibrium. Journal of Economic Dynamics and Control, 31 (9). pp. 2879-2898. DOI https://doi.org/10.1016/j.jedc.2006.09.011
Coles, Melvyn and Masters, Adrian (2007) Re-entitlement effects with duration-dependent unemployment insurance in a stochastic matching equilibrium. Journal of Economic Dynamics and Control, 31 (9). pp. 2879-2898. DOI https://doi.org/10.1016/j.jedc.2006.09.011
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. © 2006 Elsevier B.V. All rights reserved.
Item Type: | Article |
---|---|
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: | 04 Jan 2013 13:01 |
Last Modified: | 23 Oct 2024 04:56 |
URI: | http://repository.essex.ac.uk/id/eprint/4900 |