Optimal Unemployment Insurance in an Estimated Job Search Model with Savings

B-Tier
Journal: Review of Economic Dynamics
Year: 2009
Volume: 12
Issue: 1
Pages: 37-57

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The paper estimates a job search model with savings on Danish microdata that include observations on wealth and wages. Controlling for extensive observed and unobserved worker characteristics heterogeneity, the estimation relates observed unemployment spells to the model implied hazard rate for each worker. The model estimates are sensible and fit the data well. Optimal UI policy is determined in the estimated model as a trade-off between insurance provision and distortion of search incentives. The analysis emphasizes an important policy sensitivity to the interest rate and the importance of including transitional dynamics in the analysis. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:07-9
Journal Field
Macro
Author Count
1
Added to Database
2026-01-25