Braun, Helge; Brügemann, Björn - Staatswissenschaftliches Seminar, Wirtschafts- und … - 2014
We study welfare effects of public short-time compensation (STC) in a model in which firms respond to idiosyncratic profitability shocks by adjusting employment and hours per worker. Introducing STC substantially improves welfare by mitigating distortions caused by public UI, but only if firms...