Unemployment insurance in theory and practice

Article Abstract:

A salient point in the economic analysis of unemployment insurance is the close relationship between theory and empirical testing. Search theory, has a remarkable effect on labor market statistics and how econometric investigations are undertaken. Benefit generosity results to longer spells of unemployment and most likely higher overall unemployment. The choice between a change in benefit levels and a change in benefit duration should also be considered.

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Persistence, asymmetries and interrelation in factor demand

Article Abstract:

A study was conducted to analyze a neoclassical factor demand framework for structures, equipment and labor. The model integrates different dynamic specifications. These include multi-period time-to-build for structures, external investment adjustment concerns and internal adjustment costs for specific production factors. The estimation results accommodated interrelations of investment and employment in the adjustment process.

General Industrial Machinery, Machinery Manufacturing, Economics, Research and Development in the Social Sciences and Humanities, Models, Industrial equipment, Machinery, Work, Work (Labor)

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Comment on B. Holmlund, "Unemployment Insurance in Theory and Practice."

Article Abstract:

Theoretical models are likely to overrate the benefits in identifying the reservation wages of unemployed workers. The intensity of the evidence connecting the generosity of the benefit system and unemployment is not as powerful, since such a link is based from a theory rather that from an evidence. The structure of benefits, aside form just the level of benefits is also an important aspect to consider.

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