Autori
Micklewright, John
Atkinson, Anthony B.

Titolo
Unemployment compensation and labour market transitions: a critical review
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1990 - Fascicolo: 9 - Pagina iniziale: 2 - Pagina finale: 68

The paper critically reviews the treatment of unemployment compensation in both theoretical and empirical models of labour market transitions. The paper has two themes. The first is the need to consider the effect of unemployment benefits on transitions other than those between employm ent and unemployment. The second is the importance of taking account of the institutional features of unemployment compensation schemes, in particular the distinction between contributory unemployment insurance (UI) and income-tested unemployment assistance (UA). The review of theory includes partial and general equilibrium job search models, contract models and efficiency wage and dual labour market theories. The treatment of unemployment compensation in theoretical models is frequently very crude, typically ignoring such features as contribution requirements for UI, means-testing under UA, and conditions regarding voluntary quitting, availability for work and search effort. Moreover, much of the literature deals with a two-state model, considering only movements between employment and unemployment. Empirical evidence from a number of OECD countries concerning the effect of unemployment compensation on a variety of labour market transitions is appraised, and the need for care when making international comparisons is stressed. In addition to surveying the effect of varying benefit levels, consideration is given to the impact of such features as benefit duration, administration, and method of finance. The richer view of unemployment compensation and the labour market taken in the paper allows some positive impacts on transitions to be identified, this applying particularly to UI as opposed to UA.



Testo completo: http://hdl.handle.net/1814/348

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