Social insurance and transition:

We study the general equilibrium effects of social insurance on the transition in a model in which the process of moving workers from matches in the state sector to new matches in the private sector takes time and involves uncertainty. We find that adding social insurance may slow transition. When t...

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Bibliographic Details
Main Authors: Atkeson, Andrew 1961- (Author), Kehoe, Patrick J. (Author)
Format: Book
Language:English
Published: Cambridge, MA 1993
Series:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 4411
Subjects:
Summary:We study the general equilibrium effects of social insurance on the transition in a model in which the process of moving workers from matches in the state sector to new matches in the private sector takes time and involves uncertainty. We find that adding social insurance may slow transition. When there are incentive problems in this rematching process, the optimal social insurance scheme may involve forced layoffs and involuntary unemployment.
Physical Description:39 S. graph. Darst. .

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