Blumkin, Tomer; Hadar, Yossi; Yashiv, Eran - Institute for the Study of Labor (IZA) - 2005
This paper studies optimal UI policy from the perspective of worker assignment to heterogenous jobs in an environment of random matching. Workers react to UI policy through job acceptance decisions; firms react to UI policy through wage posting. There is endogenous assortative matching as a...
