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Cover of: Unemployment Insurance and Workers' Mobility
Jan Boone

Unemployment Insurance and Workers' Mobility

Section: Articles
Volume 160 (2004) / Issue 2, pp. 275-293 (19)
Published 09.07.2018
DOI 10.1628/0932456041438795
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  • 10.1628/0932456041438795
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Summary
This paper analyses the effects of unemployment insurance (UI) in a model with two sectors where one sector is more risky than the other, in the sense that the probability of becoming unemployed is higher. With risk-averse agents it is the case that, over a range of values of UI, increasing UI increases workers' mobility from the safe to the risky sector, thereby increasing both unemployment and income.