How the provision of unemployment benefits affects employment and unemployment is a debated issue. In this paper, we … job market with search effort and labor force participation decisions while varying the maximum length of unemployment … effort when unemployment benefits are extended. However, individuals are more likely to participate in the labor force and to …

, whereby special focus is placed on unemployment duration. The results of the study indicate that in contrast to reservation … wages, offered wages decline considerably with duration of unemployment. This is the main reason that ratios of reservation … wages to offered wages increase rapidly with duration of unemployment; on average, reservation wages begin to exceed offered …

predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is … selective. -- Labor market models ; welfare ; optimal unemployment insurance …

This paper studies the role of labor market institutions in business cycle fluctuations. We develop a DSGE model with … search and matching frictions and incorporate a US unemployment insurance experience rating system. Layoff taxes based on … experience rating finance the cost of unemployment benefits and create considerable employment adjustment costs. Our framework …

We present a proposal for reforming unemployment assistance in Germany through the introduction of unemployment … accounts (UAs). Instead of paying taxes that finance the unemployment assistance, employed people make ongoing contributions to … their UAs and can make withdrawals from these accounts during periods of unemployment. The aim of this policy proposal is to …

Comparing the unemployment insurance systems of the United States and of the United Kingdom it is shown that the US … unemployment insurance (UI) is the only system that provides for a negative feedback between UI expenditures and layoffs … ("experience rating"). The UK has no specific UI: Unemployment benefits are paid by the "National Insurance" which also covers …

The authors suggest a dual-system model of private unemployment insurance that includes incentives on the side of … employees as well as of employers to reduce unemployment. Each employee pays insurance premiums according to his (her … unemployment payments. On the employers' side the US system of experience rating is elaborated in such a way as to increase, via …

The analysis is about the compulsory German unemployment insurance system (GUIS). It is known that GUIS did nothing to … prevent the continuous rise of the rate of unemployment since the 1970s. The empirical literature about GUIS indicates that … literature on reforming the system of unemployment insurance has arisen, most of it aiming at marginal reforms only. It turns out …