Unemployment insurance and self-fulfilling business cycles.
We study the macroeconomic role of unemployment insurance in an economy with job search, labor force participation decisions, and involuntary unemployment. The framework allows labor market distortions to vary endogenously over the business cycle and, under certain conditions, to amplify economic fl...
| Publicado en: | Oxford Economic Papers Vol. 78; no. 2; pp. 410 - 437 |
|---|---|
| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Oxford University Press / USA
Apr2026
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=194211913&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 194211913 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00307653 OXE jtl: Oxford Economic Papers issn: 00307653 maglogo: N pubinfo: dt: Apr2026 vid: 78 iid: 2 pid: 622 pub: Oxford University Press / USA artinfo: ui: 194211913 10.1093/oep/gpag002 ppf: 410 ppct: 27 formats: tig: atl: Unemployment insurance and self-fulfilling business cycles. aug: au: Kokonas, Nikolaos Monteiro, Paulo Santos affil: Department of Economics, University of Bath, Claverton Down, Bath, BA2 7AY, United Kingdom Department of Economics, University of York, Heslington, York, YO10 5DD, United Kingdom su: Business cycles Labor market Macroeconomics Labor supply Unemployment insurance sug: subj: Business cycles Labor market Macroeconomics Labor supply Temporary Help Services Unemployment insurance keyword: copyrightHolder:Oxford University Press copyrightYear:2026 E24 E32 indeterminacy inLanguage:en J64 J65 labor wedge publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/oep/gpag002 unemployment insurance copyrightHolder:Oxford University Press copyrightYear:2026 E24 E32 indeterminacy inLanguage:en J64 J65 labor wedge publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/oep/gpag002 unemployment insurance ab: We study the macroeconomic role of unemployment insurance in an economy with job search, labor force participation decisions, and involuntary unemployment. The framework allows labor market distortions to vary endogenously over the business cycle and, under certain conditions, to amplify economic fluctuations. We show that unemployment insurance can reduce the scope for such destabilizing dynamics and thereby act as an effective automatic stabilizer. Quantitative analysis indicates that while these dynamics may arise at unemployment benefit levels comparable to those observed in North America, they are unlikely at the higher replacement rates typical of European countries. Overall, our results suggest that unemployment insurance not only provides social insurance but can also contribute to macroeconomic stability, with important implications for the design of labor market policies over the business cycle. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|