Optimal Unemployment Insurance with Endogenous Search Effort

Abstract

In the framework of a search and matching model, when search effort enters the labor market matching function, search effort by one worker generates a negative externality on other workers searching for jobs. The solution to the social planner’s problem may not be decentralized in a competitive market. Calibration shows that the current US unemployment… (More)

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Cite this paper

@inproceedings{Yan2011OptimalUI, title={Optimal Unemployment Insurance with Endogenous Search Effort}, author={Ping Yan}, year={2011} }