Change search
ReferencesLink to record
Permanent link

Direct link
Part-Time Unemployment and Optimal Unemployment Insurance
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2011 (English)Report (Other academic)
Abstract [en]

A significant fraction of the labor force consists of employed workers who are part-time unemployed (underemployed) in the sense that they are unable to work as much as they prefer. This paper develops a search and matching model to study the design of optimal unemployment insurance in an economy with unemployment as well aspart-time unemployment. Part-time unemployment provides income insurance and serves as a stepping stone to full-time jobs. Unemployment benefits for part-timers increase the outflow from unemployment to part-time work but reduce the out flow from part-time work to fulltime employment. We examine the optimal structure of benefits for unemployed and underemployed workers. The results indicate nonnegligible welfare gains associated with time limits for unemployment benefits as well as for part-time benefits. The welfare gains from optimal UI are larger when wages are fixed than when they are flexible.

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University , 2011. , 32 p.
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2011:4
Keyword [en]
Job search, part-time unemployment, unemployment
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-148458OAI: oai:DiVA.org:uu-148458DiVA: diva2:402197
Available from: 2011-03-07 Created: 2011-03-07 Last updated: 2011-03-07Bibliographically approved

Open Access in DiVA

fulltext(335 kB)116 downloads
File information
File name FULLTEXT01.pdfFile size 335 kBChecksum SHA-512
c8845aadff2df8e9724b57f2d1ffb1bbbd7dea5eeef185ae3bd151f2ed75e5c5b25d3f25d5c08759d6a886ef75a28f9f2519a878d5898e0422aa4cc8c040716d
Type fulltextMimetype application/pdf

By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 116 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 265 hits
ReferencesLink to record
Permanent link

Direct link