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Optimal State-Contingent Unemployment Insurance
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In this article, the authors propose to design unemployment insurance payments conditional on the business cycle and answer a fundamental question related to this issue: How should the payments vary with the aggregate state of the economy?Abstract:
Since the probability of finding a job is affected not only by individual effort but also by the aggregate state of the economy, designing unemployment insurance payments conditional on the business cycle could be valuable. This paper answers a fundamental question related to this issue: How should the payments vary with the aggregate state of the economy?read more
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The Effects of Extended Unemployment Insurance over the Business Cycle: Evidence from Regression Discontinuity Estimates Over Twenty Years
TL;DR: In this paper, the authors investigated the effect of extending the duration of unemployment insurance (UI) in recessions and found that the non-employment effects of a month of additional UI benefits are, at best, somewhat declining in the recessions, and the additional coverage provided by UI extensions, rises substantially during a downturn.
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Should Unemployment Insurance Vary with the Unemployment Rate? Theory and Evidence
TL;DR: The authors study how the moral hazard cost and the consumption smoothing benefit of UI vary with the unemployment rate and find that the moral hazards cost is procyclical, greater when the rate is relatively low.
ReportDOI
A Macroeconomic Theory of Optimal Unemployment Insurance
TL;DR: The authors developed a theory of optimal unemployment insurance (UI) that accounts for workers' job-search behavior and firms' hiring behavior, and proposed empirical criteria to determine whether tightness is inefficiently high or low and whether UI raises or lowers tightness.
ReportDOI
The Causal Effect of Unemployment Duration on Wages: Evidence from Unemployment Insurance Extensions ⇤
Johannes F. Schmieder,Johannes F. Schmieder,Johannes F. Schmieder,Till von Wachter,Till von Wachter,Stefan Bender +5 more
TL;DR: In this paper, the authors present an analytical framework for analyzing the causal effect of non-employment duration on wages and implements it using a regression discontinuity design and a large administrative dataset from Germany.
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Journal ArticleDOI
On Repeated Moral Hazard with Discounting
TL;DR: In this article, the optimal contracts in an infinitely repeated agency model with both the principal and the agent discounting the future were analyzed using standard variational techniques, and a stationary representation of the optimal contract when the agent's conditional discounted expected utility was used as a state variable was obtained.
Journal ArticleDOI
The Optimal Payment of Unemployment Insurance Benefits over Time
Steven Shavell,Laurence Weiss +1 more
TL;DR: In this article, the authors used a theoretical model to determine characteristics of the time sequence of benefits that maximizes the expected utility of the unemployed, given that they act in a self-interested way and given the total size of the U.I. budget.
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Job Loss, Job Finding, and Unemployment in the U.S. Economy Over the Past Fifty Years
Robert E. Hall,Robert E. Hall +1 more
TL;DR: This paper developed estimates of separation rates and job-finding rates for the past 50 years, using historical data informed by detailed recent data and found that the separation rate is nearly constant while the job finding rate shows high volatility at business cycle and lower frequencies.
Journal ArticleDOI
Computing Multi-Period, Information-Constrained Optima
TL;DR: In this article, the authors present a detailed theoretical derivation and justification for methods used to compute solutions to a multi-period (including infinite-period), continuum-agent, unobservedeffort economy.
Journal ArticleDOI
The Effects of Extended Unemployment Insurance Over the Business Cycle: Evidence from Regression Discontinuity Estimates Over 20 Years
TL;DR: In this article, the authors investigated the effect of extending the duration of unemployment insurance in recessions and found that the non-employment effects of a month of additional UI benefits are, at best, somewhat declining.