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Optimal Unemployment Insurance With Different Types of Job

Huang, Pidong (2013): Optimal Unemployment Insurance With Different Types of Job.

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Abstract

This paper considers the design of optimal unemployment insurance with multiple types of job. The environment is an extension of Hopenhayn and Nicolini(1997). We study the model by using the fi�rst-order approach. The optimal contract still displays benefit� decreasing over the length of the unemployment spell. The wage tax after reemployment depends on the length of unemployment spell.

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