In this paper, we build a dynamic general equilibrium model with heterogeneous agents to measure the welfare effect of banning child labor in an economy with aggregate fluctuations and idiosyncratic shocks to employment. We then design an unemployment insurance system that generates the...

This paper uses a heterogeneous agent model with liquidity constrained workers subject to employment shocks to study the feasibility of a system of unemployment accounts with the example of Oregon under various moral hazard scenarios. We determine the optimal policy parameter vector and compare...