A Context-Robust Measure of the Disincentive Cost of Unemployment Insurance

Autor:	Till von Wachter, Johannes F. Schmieder
Rok vydání:	2017
Předmět:	Economics and Econometrics Labour economics Measure (data warehouse) media_common.quotation_subject 05 social sciences Context (language use) 0502 economics and business Unemployment Econometrics Economics 050207 economics Distortion (economics) 050205 econometrics media_common
Zdroj:	American Economic Review. 107:343-348
ISSN:	0002-8282
DOI:	10.1257/aer.p20171026
Popis:	This paper proposes a new measure of the disincentive cost of unemployment insurance (UI): the ratio of the behavioral cost (BC) to the mechanical cost (MC) of a UI reform. This measure represents the labor supply distortion relative to the additional (mechanical) transfer from the UI reform. We show the BC/MC ratio naturally arises from a model of optimal UI and can be readily computed and compared across different types of reforms and labor market contexts. We summarize the evidence regarding the BC/MC ratio for existing studies and relate it to typical measures of employment effects of UI.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ceb7581faa1b75ee51b723304e117426 https://doi.org/10.1257/aer.p20171026 Zobrazit plný text záznamu Plný text ve formátu PDF