Unemployment insurance in the presence of an informal sector

We study the effect of UI benefits in a typical developing country where the informal sector is sizeable and persistent. In a partial equilibrium environment, ruling out the macroeconomic consequences of UI benefits, we characterize the stationary equilibrium of an economy where policyholders may be employed in the formal sector, short-run unemployed receiving UI benefits or long-run unemployed without UI benefits. We perform comparative static exercises to understand how UI benefits affect unemployed worker´s effort to secure a formal job, their labor supply in the informal sector and leisure time. Our model reveals that an increase in UI benefits generates two opposing effects for the short-run unemployed. First, since search efforts cannot be monitored it generates moral hazard behaviours that lower effort. Second, it generates an income effect as it reduces the marginal cost of searching for a formal job and increases effort.The overall effect is ambiguous and depends on the relative strength of these two effects. Additionally, we show that an increase in UI benefits increases the efforts of long-run unemployed workers. We provide a simple simulation exercise which suggests that the income effect pointed out is not necessarily of second-order importance in comparison with moral hazard strength. This result softens the widespread opinion, usually based on the microeconomic/partial equilibrium argument that the presence of dual labor markets is an obstacle to providing UI in developing countries.

Does the unemployment benefit institution affect the productivity of workers? evidence from a field experiment

We investigate whether and how the type of unemployment benefit institution affects productivity. We designed a field experiment to compare workers’ productivity under a welfare system, where the unemployed receive an unconditional monetary transfer, with their productivity under a workfare system, where the transfer is received conditional on the unemployed spending some time on ancillary activities. First, we find that having an unemployment benefit institution, regardless of whether it makes transfers conditional or unconditional, increases workers’ productivity. Second, we find that productivity is higher under Welfare than under Workfare. Becoming unemployed under Welfare comes at the psychological cost of a drop in self-esteem, presumably due to the shame or stigma associated with receiving an unconditional unemployment benefit. We document the empirical relevance of precisely this channel. The differences we observe in productivity suggest that this psychological cost acts as an extra nonmonetary incentive for workers under Welfare to put a higher effort in their work.

Unemployment insurance an analysis of optimal mechanisms under aggregate shocks

The purpose of this work is to provide a brief overview of the literature on the optimal design of unemployment insurance systems by analyzing some of the most influential articles published over the last three decades on the subject and extend the main results to a multiple aggregate shocks environment. The properties of optimal contracts are discussed in light of the key assumptions commonly made in theoretical publications on the area. Moreover, the implications of relaxing each of these hypothesis is reckoned as well. The analysis of models of only one unemployment spell starts from the seminal work of Shavell and Weiss (1979). In a simple and common setting, unemployment benefits policies, wage taxes and search effort assignments are covered. Further, the idea that the UI distortion of the relative price of leisure and consumption is the only explanation for the marginal incentives to search for a job is discussed, putting into question the reduction in labor supply caused by social insurance, usually interpreted as solely an evidence of a dynamic moral hazard caused by a substitution effect. In addition, the paper presents one characterization of optimal unemployment insurance contracts in environments in which workers experience multiple unemployment spells. Finally, an extension to multiple aggregate shocks environment is considered. The paper ends with a numerical analysis of the implications of i.i.d. shocks to the optimal unemployment insurance mechanism.

Nilpotent orbits and codimension-2 defects of 6d N = (2, 0)theories

We study the local properties of a class of codimension-2 defects of the 6d N = (2, 0) theories of type J = A, D, E labeled by nilpotent orbits of a Lie algebra $g, where g is determined by J and the outer-automorphism twist around the defect. This class is a natural generalization of the defects of the six-dimensional (6d) theory of type SU(N) labeled by a Young diagram with N boxes. For any of these defects, we determine its contribution to the dimension of the Higgs branch, to the Coulomb branch operators and their scaling dimensions, to the four-dimensional (4d) central charges a and c and to the flavor central charge k. © 2013 World Scientific Publishing Company.

Time for some shock (absorption): Reinsurance of national unemployment insurance should be a Commission priority. CEPS Commentary, 1 October 2014

In presenting their priorities for the new European Commission, Miroslav Beblavý and Ilaria Maselli assert in this CEPS Commentary that the time has come to devise an EU-level shock absorption mechanism. In their view, the instrument that best aligns varying political and economic objectives is a form of reinsurance of national systems of unemployment insurance. The primary motivation for the reinsurance proposal is that it can have a substantial stabilising effect, especially in case of large shocks, and, at the same time, be politically realistic in terms of contributions, costs and administrative burdens.

Determinants of Financial Capital Use: Review of theories and implications for rural businesses. Factor Markets Working Paper No. 19, February 2012

This paper presents a review of financial economics literature and offers a comprehensive discussion and systematisation of determinants of financial capital use. In congruence with modern financial literature, it is acknowledged here that real and financial capital decisions are interdependent. While the fundamental role of the (unconstrained) demand for real capital in the demand for finance is acknowledged, the deliverable focuses on three complementary categories of the determinants of financial capital use: i) capital market imperfections; ii) factors mitigating these imperfections or their impacts; and iii) firm- and sector-related factors, which alter the severity of financial constraints and their effects. To address the question of the optimal choice of financial instruments, theories of firm capital structure are reviewed. The deliverable concludes with theory-derived implications for agricultural and non-agricultural rural business’ finance.

Comparison of state unemployment insurance laws.

The Comparison's are updated with annual revisions called: Comparison revision, <1998->

Report of the Special Advisory Committee on Unemployment Compensation Administrative Methods : submitted pursuant to the Illinois Unemployment Compensation Act.

Mode of access: Internet.

Unemployment; a problem of industry,

"Contains a course of lectures delivered in Oxford, during Michaelmas term of the year now ending [1908] for the delegates of the Common University Fund. Its object is to combine a record of the principal facts of unemployement with a continuous argument as to the causes of unemployment. It includes a good deal of matter from published sources ... and appendices, the most important of which deal with 'Public labour exchanges in Germany' (reprinted from the Economic Journal for March, 1908) and 'Methods of seeking employment in Great Britain'."--Pref.

Monthly employment and annual wages of firms covered by the Illinois unemployment compensation act 1947

Mode of access: Internet.

An explanation of employers' duties under the Illinois unemployment compensation act.

Mode of access: Internet.

Ohio family characteristics study of May 1961 claimants under Temporary Extended Unemployment Compensation Act of 1961.

"November 1961."

Annual report of the District Unemployment Compensation Board.

Mode of access: Internet.

Using Developmental Theories to Inform the Design of Technology for Children

Electronic Blocks are a new programming environment, designed specifically for children aged between three and eight years. As such, the design of the Electronic Block environment is firmly based on principles of developmentally appropriate practices in early childhood education. The Electronic Blocks are physical, stackable blocks that include sensor blocks, action blocks and logic blocks. Evaluation of the Electronic Blocks with both preschool and primary school children shows that the blocks' ease of use and power of engagement have created a compelling tool for the introduction of meaningful technology education in an early childhood setting. The key to the effectiveness of the Electronic Blocks lies in an adherence to theories of development and learning throughout the Electronic Blocks design process.

The single-phase induction motor:a critical appraisal of the rotating-field and cross-field theories with particular reference to skin effect

The purpose of this thesis is twofold: to examine the validity of the rotating-field and cross-field theories of the single-phase induction motor when applied to a cage rotor machine; and to examine the extent to which skin effect is likely to modify the characteristics of a cage rotor machine. A mathematical analysis is presented for a single-phase induction motor in which the rotor parameters are modified by skin effect. Although this is based on the usual type of ideal machine, a new form of model rotor allows approximations for skin effect phenomena to be included as an integral part of the analysis. Performance equations appropriate to the rotating-field and cross-field theories are deduced, and the corresponding explanations for the steady-state mode of operation are critically examined. The evaluation of the winding currents and developed torque is simplified by the introduction of new dimensionless factors which are functions of the resistance/reactance ratios of the rotor and the speed. Tables of the factors are included for selected numerical values of the parameter ratios, and these are used to deduce typical operating characteristics for both cage and wound rotor machines. It is shown that a qualitative explanation of the mode of operation of a cage rotor machine is obtained from either theory; but the operating characteristics must be deduced from the performance equations of the rotating-field theory, because of the restrictions on the values of the rotor parameters imposed by skin effect.