Unemployment risks and intra-household insurance
Fernández-Blanco, Javier (Universitat Autònoma de Barcelona)

Date:	2022
Abstract:	To study the constrained efficient public insurance provision against unemployment risks, we build a directed search model with households where a spouse's ability to provide consumption insurance determines the risks job-seekers take on. The planner's transfers to the unemployed fall with the spouse's income because of concave preferences with limited complementarity between consumption and the spouse's labor. Due to the absence of such a transfers scheme in the laissez-faire equilibrium, too many too-low-wage jobs are created as jobless workers seek insurance in the labor market. Social welfare-maximizing policies with simple tax schemes exhibit unemployment benefits falling with spouse's income, and nearly fill up the welfare gap.
Grants:	Agencia Estatal de Investigación PGC2018-094364-B-I00 Agència de Gestió d'Ajuts Universitaris i de Recerca 2017/SGR-1765 Ministerio de Ciencia e Innovación CEX2019-000915-S
Note:	Altres ajuts: acords transformatius de la UAB
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Document:	Article ; recerca ; Versió publicada
Published in:	Journal of economic theory, Vol. 203 (july 2022) , p. 105477, ISSN 1095-7235

DOI: 10.1016/j.jet.2022.105477

34 p, 745.6 KB

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