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How should unemployment insurance vary over the business cycle? / by Serdar Birinci and Kurt See.FB3-5/2020-47E-PDF

"We study optimal unemployment insurance (UI) policy over the business cycle, using a heterogeneous agent job-search model with aggregate risk and incomplete markets. We validate the model-implied micro and macro labor market elasticities to changes in the generosity of UI benefits against existing estimates and we reconcile divergent empirical findings. We show that generating the observed demographic differences between UI recipients and non-recipients is critical for determining the magnitudes of these elasticities. We find that the optimal UI policy features countercyclical replacement rates with an average generosity that is close to current U.S. policy but that it adopts drastically longer payment durations reminiscent of European policies"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.893429&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleHow should unemployment insurance vary over the business cycle? / by Serdar Birinci and Kurt See.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-47
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: November 6, 2020."
  • Includes bibliographical references (pages 42-46).
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020.
  • ©2020
Author / Contributor
  • Birinci, Serdar, author.
Description1 online resource (ii, 46, 21 pages) : colour graphs.
Catalogue number
  • FB3-5/2020-47E-PDF
Subject terms
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