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There is wide concern that migration flows may undermine the financial viability of generous welfare arrangements. The … workers. However, this overlooks how welfare arrangements affect return-migration in case of social events like job loss …. Importantly, migrants are shown to be self-selected in a way affecting both migration and return-migration. Two migration regimes …
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The consequences of cylical contingencies in unemployment insurance systems are considered in a search-matching model allowing for shifts between goodʺ and badʺ states of nature. An argument for state contingencies is that insurance arguments are stronger and incentive effects weaker in "bad"...
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