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Abstract Views: 5
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Staying on the Dole
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HOLGER STRULIK
Institute of Macroeconomics
JEAN-ROBERT TYRAN
University of Copenhagen - Department of Economics; Centre for Economic Policy Research (CEPR)
PAOLO VANINI
University of Zurich - Swiss Banking Institute (ISB); Zurich Cantonal Bank
October 2006
U of Copenhagen Economics Discussion Paper 06-18
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Abstract:
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.
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Keywords: Unemployment, Skill Degradation, Retraining, Unemployment Benefits, Welfare Assistance, Present-Biased Preferences
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JEL Classifications: J64, J31, J38
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Working Paper Series
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Suggested Citation
Strulik, Holger, Tyran, Jean-Robert and Vanini, Paolo, "Staying on the Dole"
(October 2006).
U of Copenhagen Economics Discussion Paper 06-18 Available at SSRN: http://ssrn.com/abstract=946401
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Contact Information for
JEAN-ROBERT
TYRAN
(Contact Author)
Email address for JEAN-ROBERT
TYRAN
University of Copenhagen - Department of Economics
Studistraede 6
DK 1455 Copenhagen
DK-1455
Denmark
+45 353 23 027 (Phone)
(No e-mail address available for JEAN-ROBERT
TYRAN
Centre for Economic Policy Research (CEPR)
90-98 Goswell Road
London EC1V 7RR
United Kingdom
Contact Information for
HOLGER
STRULIK
Email address for HOLGER
STRULIK
Institute of Macroeconomics
Koenigsworther Platz 1
Hannover
30167
Germany
Contact Information for
PAOLO
VANINI
Email address for PAOLO
VANINI
University of Zurich - Swiss Banking Institute (ISB)
Plattenstrasse 14
CH-8032 Zurich
Switzerland
Email address for PAOLO
VANINI
Zurich Cantonal Bank
Josefstrasse 222
CH-8000 Zurich
Switzerland
0041 1 292 70 39 (Phone)
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