Should unemployment compensation be paid indefinitely at a fixed rate or should it decline (or increase) over a worker …’s unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features worker … optimal insurance program implies a declining sequence of unemployment compensation over the spell of unemployment. Numerical …

-person families receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment …

receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment insurance …