In response to the Great Recession, unemployment insurance has been extended in many countries, but there is controversy over whether such extensions are optimal. Unemployment insurance entails direct fiscal costs, and encourages job seekers to prolong their search. The familiar benefit of unemployment insurance is that it allows the jobless to maintain their consumption. However, by reducing the search effort of other workers, it also improves a given worker’s chance of finding a job. Unemployment insurance extensions appear less costly when these search externalities are considered.
Rafael Lalive, Camille Landais, Josef Zweimüller, 09 November 2013
Most Read
Vox eBooks
Pisani-Ferry, Zettelmeyer, 13 June 2019
Vox Talks
Events
-
2 - 12 July 2019 / University of Warwick / University of Warwick
-
14 July - 3 August 2019 / St Mary's University, Twickenham / University of Warwick
-
18 - 20 July 2019 / Columbia University & Federal Reserve Bank of New York, NYC, USA / Central Bank Research Association (CEBRA)
-
17 - 18 August 2019 / Peking University, Beijing / Chinese University of Hong Kong – Tsinghua University Joint Research Center for Chinese Economy, the Institute for Emerging Market Studies at Hong Kong University of Science and Technology, the Guanghua School of Management at Peking University, the Stanford Center on Global Poverty and Development at Stanford University, the School of Economics and Management at Tsinghua University, BREAD, NBER and CEPR
-
19 - 20 August 2019 / Vienna, Palais Coburg / WU Research Institute for Capital Markets (ISK)
