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LABOR MARKET EFFECTS OF UNEMPLOYMENT INSURANCE DESIGN
Author(s) -
Tatsiramos Konstantinos,
Ours Jan C.
Publication year - 2014
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12005
Subject(s) - generosity , unemployment , economics , business cycle , recession , market liquidity , empirical evidence , labour economics , macroeconomics , philosophy , epistemology , theology
With the emergence of the Great Recession unemployment insurance (UI) is once again at the heart of the policy debate. In this paper, we review the recent theoretical and empirical evidence on the labor market effects of UI design. We also discuss policy issues related to UI design, including the structure of benefits, the role of liquidity constraints and the pros and cons of a UI system in which the generosity of UI benefits is varying over the business cycle. Finally, we identify potential areas of future research.