Working paper: Benefit reentitlement conditions in unemployment insurance schemes

Authors Andersen, Torben M.; Kristoffersen, Mark Strøm; Svarer, Michael
Subject Danish Economy
Type Working paper
Year 2015
Published 20 May 2015
​Unemployment insurance schemes often include conditions on past employment history as part of the eligibility conditions. In a theoretical model the authors show that benefit duration and employment requirements are substitute instruments...

Simulations show that under a utilitarian social welfare function a higher insurance motive captured by more risk aversion implies higher benefit generosity and more lax employment requirements but also shortened benefit duration.