Unemployment Benefits vs . Unemployment Accounts : A Quantitative Exploration ∗

@inproceedings{Pallage2011UnemploymentBV,
  title={Unemployment Benefits vs . Unemployment Accounts : A Quantitative Exploration ∗},
  author={St{\'e}phane Pallage},
  year={2011}
}
  • Stéphane Pallage
  • Published 2011
We use a dynamic equilibrium model with heterogeneous agents to assess the quantitative effects of switching from the typical unemployment insurance programs to a system of mandatory unemployment accounts. In such a system, workers contribute to a personal account from which they can withdraw, in a controlled fashion, once unemployed or retired. One of the promises of this alternative approach to unemployment benefits is its effect on moral hazard and shirking as workers are personally affected… CONTINUE READING