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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 business cycle contingencies in unemployment insurance systems are considered in a search-matching model allowing for shifts between "good" and "bad" states of nature. We show that not only is there an insurance argument for such contingencies, but there may also be an...
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