Staying on the Dole
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Staying on the Dole. / Strulik, Holger; Tyran, Jean-Robert; Vanini, Paolo.
Cph. : Department of Economics, University of Copenhagen, 2006.Research output: Working paper › Research
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TY - UNPB
T1 - Staying on the Dole
AU - Strulik, Holger
AU - Tyran, Jean-Robert
AU - Vanini, Paolo
N1 - JEL Classification: J64, J31, J38
PY - 2006
Y1 - 2006
N2 - We develop a simple model of short- and long-term unemployment to study how labor market institutions interact with labor market conditions and personal characteristics of the unemployed. We analyze how the decision to exit unemployment and to mitigate human capital degradation by retraining depends on education, skill degradation, age, labor market tightness, taxes, unemployment insurance benefits and welfare assistance. We extend our analysis by allowing for time-inconsistent choices and demonstrate the possibility of an unemployment trap
AB - We develop a simple model of short- and long-term unemployment to study how labor market institutions interact with labor market conditions and personal characteristics of the unemployed. We analyze how the decision to exit unemployment and to mitigate human capital degradation by retraining depends on education, skill degradation, age, labor market tightness, taxes, unemployment insurance benefits and welfare assistance. We extend our analysis by allowing for time-inconsistent choices and demonstrate the possibility of an unemployment trap
KW - Faculty of Social Sciences
KW - unemployment
KW - skill degradation
KW - unemployment benefits
KW - present-biased preferences
KW - retraining
M3 - Working paper
BT - Staying on the Dole
PB - Department of Economics, University of Copenhagen
CY - Cph.
ER -
ID: 312653