In this paper, I build a wage bargaining model to study the consequences of unemployment insurance and unemployment assistance on unemployment. I show that indexing the unemployment insurance benefit on the last wage earned increase the level of unemployment. I describe necessary conditions to...

This paper deals with the effect of basic income schemes on the equilibrium unemployment rate. It develops a dynamic general equilibrium model of a unionized economy where the budget of the State has to be balanced in each period. Compared to a benchmark situation with an unemployent insurance,...