Optimal Unemployment Insurance with Endogenous Negative Duration Dependence

2016 ◽  
Vol 45 (3) ◽  
pp. 395-422 ◽  
Author(s):  
Brandon Lehr
Keyword(s):  
Human Capital ◽  
Unemployment Insurance ◽  
Firm Behavior ◽  
Correction Term ◽  
Social Optimum ◽  
Duration Dependence ◽  
Insurance Benefit ◽  
The Social ◽  
Capital Depreciation ◽  
The Unemployed

This article characterizes optimal unemployment insurance (UI) in an economy with endogenous negative duration dependence in hiring rates for the unemployed. The characterization generalizes the standard Baily–Chetty result and is independent of the particular mechanism generating endogenous hiring rates. I find that at the social optimum, UI equates the moral hazard cost with the sum of the insurance benefit and a new externality correction term. The sign of this externality correction term depends, in part, on the responsiveness of hiring rates to the UI benefit. I show how the effect of UI on hiring rates in turn depends on the particular assumptions about firm behavior, considering the cases of employer screening and human capital depreciation models.

Estimation of the human capital depreciation rate: an international comparison and policy implications in South Korea

2021 ◽  
pp. 213-257
Author(s):  
Ga Woon Ban
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Empirical Support ◽  
Policy Implications ◽  
Policy Interventions ◽  
National Differences ◽  
Skills Retention ◽  
The Social ◽  
Capital Depreciation ◽  
World Point

This chapter emphasizes skills retention instead of human capital accumulation, which is prominently featured in the social investment literature. The chapter discovers strong empirical support for the so-called use-it-or-lose-it hypothesis, which is that utilising people's skills at work is critical to retaining human capital. Considerable cross-national differences in human capital depreciation across the Organisation for Economic Co-operation and Development (OECD) world point to workplaces as the key site, as differences in workplace organisation may shape differences in how skills are used and, accordingly, differences in human capital depreciation. Considering the differences in skills depreciation, the chapter calls for tailored policy interventions rather than a one-size-fits-all approach. It argues that countries should take different approaches to preserving human capital, depending on their unique patterns of human capital use and depreciation.

scholarly journals Social Protection and New Forms of Work: Expansion of Unemployment Insurance Benefits’ Coverage in Estonia

2021 ◽  
Vol 28 (1) ◽  
pp. 61-72
Author(s):  
Gaabriel Tavits
Keyword(s):  
Unemployment Insurance ◽  
Social Protection ◽  
Protection System ◽  
Short Term ◽  
Pension Insurance ◽  
The Social ◽  
Protection Systems ◽  
New Forms Of Work ◽  
The Unemployed ◽  
Social Protection Systems

Ensuring social protection for people having lost their jobs is an important part of the social protection system. Although health insurance and pension insurance have traditionally been the most important social protection systems, then social guarantees (both passive and active measures) for the unemployed cannot be underestimated in the changed forms of employment. New forms of work necessitate attention to whether and how people working under new forms of employment, e.g. platform workers, can register as unemployed and whether short-term employment may worsen their standing compared to other unemployed. This article analyses the Estonian social protection system for the unemployed and the planned changes in connection with platform work.

Do the Unemployed Pay Lower Prices? A Reassessment of the Value of Unemployment Insurance

2019 ◽  
Vol 18 (5) ◽  
pp. 2135-2181
Author(s):  
Rodolfo G Campos ◽  
Iliana Reggio
Keyword(s):  
Panel Data ◽  
Unemployment Insurance ◽  
The United States ◽  
Social Value ◽  
Consumption Smoothing ◽  
Consumption Expenditure ◽  
Cross Sectional ◽  
The Social ◽  
The Unemployed ◽  
Consumption Survey

Abstract It is well known that transitions from employment to unemployment reduce consumption expenditure, but is this fall mainly driven by quantities or by prices? Using panel data on expenditure and quantities from the Spanish consumption survey we find that the unemployed pay prices that are, on average, 1.5% lower, and that this difference in prices accounts for roughly one sixth of the gap in consumption expenditure between the employed and the unemployed. The reduction in prices estimated with panel data is considerably lower than the existing estimates for the United States, which rely on cross-sectional comparisons. Based on our estimates, and using economic theory, we reassess the value of providing unemployment insurance and show how the social value of providing unemployment insurance can be decomposed into a consumption-smoothing component and a component that depends on prices.

DEMOCRATIZATION OF THE SOCIAL ENVIRONMENT OF HIGHER EDUCATION INSTITUTION AS A PREREQUISITE FOR THE INDIVIDUALS’ DEVELOPMENT POTENTIAL OF THE SUBJECTS OF ITS ACTION

2020 ◽  
pp. 7-24
Author(s):  
Volodymyr Ryabchenko
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Social Environment ◽  
Higher Education Institutions ◽  
Social Systems ◽  
Education Institution ◽  
Human Capital Development ◽  
The Social ◽  
Conceptual Problems ◽  
Capital Development

There are following prerequisites outlined in this article: worldwide democratization trend; complexity of structures of social systems; growing needs in human capital development; autonomy of national higher education institutions; civilizational problem of Ukraine in national elite. Conceptual problems on a road to real democracy in higher education institutions were actualized and analyzed. Determined and characterized three models of higher education institutions activities based on the level of democratization needs of their social environment as: negative, neutral and favorable.

scholarly journals A game theoretic approach reveals that discretizing clinical information can reduce antibiotic misuse

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Maya Diamant ◽  
Shoham Baruch ◽  
Eias Kassem ◽  
Khitam Muhsen ◽  
Dov Samet ◽  
...  
Keyword(s):  
Antibiotic Prescription ◽  
Clinical Information ◽  
Social Optimum ◽  
Theoretic Approach ◽  
Theoretic Analysis ◽  
Game Theoretic Analysis ◽  
Optimal Output ◽  
The Social ◽  
Game Theoretic ◽  
Game Theoretic Approach

AbstractThe overuse of antibiotics is exacerbating the antibiotic resistance crisis. Since this problem is a classic common-goods dilemma, it naturally lends itself to a game-theoretic analysis. Hence, we designed a model wherein physicians weigh whether antibiotics should be prescribed, given that antibiotic usage depletes its future effectiveness. The physicians’ decisions rely on the probability of a bacterial infection before definitive laboratory results are available. We show that the physicians’ equilibrium decision rule of antibiotic prescription is not socially optimal. However, we prove that discretizing the information provided to physicians can mitigate the gap between their equilibrium decisions and the social optimum of antibiotic prescription. Despite this problem’s complexity, the effectiveness of the discretization solely depends on the type of information available to the physician to determine the nature of infection. This is demonstrated on theoretic distributions and a clinical dataset. Our results provide a game-theory based guide for optimal output of current and future decision support systems of antibiotic prescription.

scholarly journals Distributive Consequences of Risk Privatization: The Case of the Swedish Unemployment Insurance System

2020 ◽  
Vol 66 (3) ◽  
pp. 207-235
Author(s):  
Jayeon Lindellee
Keyword(s):  
Unemployment Insurance ◽  
Unemployment Benefit ◽  
Income Loss ◽  
The Public ◽  
Insurance Benefit ◽  
Insurance Program ◽  
Unemployment Insurance Benefit ◽  
Income Insurance ◽  
Unemployment Insurance System ◽  
Retail Workers

Abstract The public unemployment insurance program in Sweden has retrenched in terms of its benefit generosity in the last three decades. As a response to this trend, in which an ever-smaller proportion of the previous income of unemployed persons is compensated by public unemployment insurance benefit, complementary income insurance schemes provided by unions have expanded rapidly in the last 15 years, currently covering one half of the working population. What does this change mean for people who need income protection upon unemployment and are more likely to find themselves unemployed or underemployed? By analyzing survey-based benefit recipiency data among retail workers who were unemployed in 2014, this article explores the outcomes of the multi-pillarized unemployment benefit provision system in Sweden. While public unemployment insurance benefit does not fully compensate for the income loss for the majority of retail workers, the promise of a complementary income insurance scheme seems to be illusory for many individuals as they repeatedly oscillate between precarious work and benefits, accompanied by the burden of navigating a complex system.

scholarly journals Assessing traveler compliance with the social optimum: A stated preference study

2021 ◽  
Vol 23 ◽  
pp. 177-191
Author(s):  
Guilhem Mariotte ◽  
Ludovic Leclercq ◽  
Humberto Gonzalez Ramirez ◽  
Jean Krug ◽  
Cécile Bécarie
Keyword(s):  
Stated Preference ◽  
Social Optimum ◽  
The Social ◽  
Preference Study

The role of organisational culture in enhancing the human capital applied study on the social security corporation

2018 ◽  
Vol 15 (3) ◽  
pp. 258 ◽  
Author(s):  
Abdallah Mishael Obeidat ◽  
Shadi Habis Abualoush ◽  
Hani Jazza Irtaimeh ◽  
Aminah A. Khaddam ◽  
Khaled Adnan Bataineh
Keyword(s):  
Human Capital ◽  
Social Security ◽  
Organisational Culture ◽  
Applied Study ◽  
The Social
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