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An Adverse Selection Model of Optimal Unemployment Insurance
unemployment insurance adverse selection moral hazard
2013/10/25
We derive the shape of optimal unemployment insurance (UI) contracts when agents can exert search effort but face different search costs and have private information about their type. We derive a recu...
Hiring and Firing Costs, Adverse Selection and Long-term Unemployment
Adverse selection turnover costs unemployment worker flows discrimination
2013/10/18
In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment are much lower in Europe compared to North America, while employment-to-employmen...