English, Article edition: Optimal Unemployment Insurance and Employment History HUGO A. HOPENHAYN; JUAN PABLO NICOLINI

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Optimal Unemployment Insurance and Employment History
Author
  • HUGO A. HOPENHAYN
  • JUAN PABLO NICOLINI
Physical Description
  • article
Notes
  • In existing unemployment insurance programmes, it is standard to condition eligibility on the previous employment record of unemployed workers. The purpose of this article is to study conditions under which the efficient contract exhibits these properties. In order to do so, we characterize the optimal unemployment insurance contract in asymmetric information environments in which workers experience multiple unemployment spells. We show that if quits cannot be distinguished from layoffs, it is optimal to condition the benefits paid to unemployed workers on their employment history, in particular, the coverage should increase with the length of previous employment spells. Copyright Copyright © 2009 The Review of Economic Studies Limited.
  • RePEc:bla:restud:v:76:y:2009:i:3:p:1049-1070
Language
  • English
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