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The benefits of implementing Unemployment Insurance Savings Accounts (UISAs) are studied in the presence of the multiple sources of information frictions often existing in developing countries. A benchmark incomplete markets economy is calibrated to Mexico in the early 2000s. The unconstrained...
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We study optimal unemployment insurance (UI) over the business cycle using a heterogeneous agent job search model with aggregate risk and incomplete markets. We validate the model-implied micro and macro labor market elasticities to changes in UI generosity against existing estimates, and...
Persistent link: https://www.econbiz.de/10012137069
The costs of searching for a job vacancy are typically associated with friction that deters or delays employment of potentially productive individuals. We demonstrate that in a labor market with moral hazard where effort is noncontractible, job search costs play a positive role, whose effect may...
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simulations to understand how trade affects economic outcomes in the presence of informality. We show that: (1) Trade openness … unambiguously decreases informality in the tradable sector, but has ambiguous effects on aggregate informality. (2) The productivity … when informality is repressed. (4) Repressing informality increases productivity, but at the expense of employment and …
Persistent link: https://www.econbiz.de/10012427899
Employment data in India is far from adequate if policy responses have to be more effective and timely. Most employment surveys suffer from drawbacks such as limited data coverage, infrequent data collection and long time lags. To address these gaps and revamp the existing employment data...
Persistent link: https://www.econbiz.de/10011747610
outcomes. Informality of jobs with non-regular un-recorded income becomes the biggest challenge for financial institutions to … provide these services to a large section of the society. The informality of jobs may take various shapes and forms. Through …
Persistent link: https://www.econbiz.de/10012006937
This paper studies the effect of mandated severance pay in a matching model featuring wage rigidity for ongoing, but not new, matches. Mandated severance pay matters only if binding real wage rigidities imply inefficient separation under employment at will. In such a case, large enough severance...
Persistent link: https://www.econbiz.de/10009668414
Using a large-scale panel data set, we trace the evolution of incomes and well-being around the entry into 'solo self-employment' - that is, running a business without employees. We find that solo self-employment is used to self-insure against employment shocks: employment rates fall and poverty...
Persistent link: https://www.econbiz.de/10012253292