calibrating a life cycle model with unemployment risk and endogenous search effort, we find that allowing unemployment replacement …We argue that US welfare would rise if unemployment insurance were increased for younger and decreased for older … workers. This is because the young tend to lack the means to smooth consumption during unemployment and want jobs to …

We develop an equilibrium search-matching model with risk-neutral agents and two-sided ex-ante heterogeneity …. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … States in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies …

-skilled workers. The stylized facts are that profits are concentrated among the high-skilled, involuntary unemployment is mostly among … the low-skilled, and private unemployment insurance is missing. This paper analyzes the effectiveness of redistribution …

those may be unobservable ex-ante. The problem of characterizing constrained optimal unemployment insurance in this case has … been neglected in previous literature. We construct a model of optimal unemployment insurance where multiple incentive … respected in addition to the standard constraint involving costly unobservable job-search. In particular, we derive closed …

This Paper analyses the design of optimal unemployment insurance in a search equilibrium framework where search effort … among the unemployed is not perfectly observable. We examine to what extent the optimal policy involves monitoring of search … effort and benefit sanctions if observed search is deemed insufficient. We find that introducing monitoring and sanctions …

unemployment. In the optimal welfare program, assisted search is implemented between an initial spell of private search … (unemployment insurance) and a final spell of pure income support where search effort is not elicited. To be effective, job-search … search-first”) emphasize private job-search and provide assistance in finding and retaining a durable employment. This paper …

the unemployment insurance and the optimal search behavior of the unemployed gives rise to a self-reinforcing mechanism …In this paper, we incorporate a positive theory of unemployment insurance into a dynamic overlapping generations model … with search-matching frictions and on-the-job learning-by-doing. The model shows that societies populated by identical …

against the risks of involuntary unemployment and low ability. To that end, we introduce search unemployment in a model of … and the unemployment benefit) increases if, for efficient agents, the participation constraint (governing job search …This Paper explores the optimal interaction between the tax system and unemployment compensation in insuring people …

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses …

relatively choosier at the beginning of their unemployment spell. Hence they tend to continue to search unless a sufficiently …