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Title: Measuring the Equilibrium Effects of Unemployment Benefits Dispersion
Author(s): Gerard van den Berg, G Ridder and Aico van Vuuren
Publication Date: August 2000
Keyword(s): Benefit Levels, Equilibrium Search, Minimum Wages, Wages and Welfare
Programme Area(s): Labour Economics
Abstract: We analyse the impact of unemployment benefits and minimum wages using an equilibrium search model, which allows for dispersion of benefits and productivity levels, job-to-job transitions, and structural and frictional unemployment. The estimation method uses readily available aggregate data on marginal distributions of unemployment durations as well as wages and benefit levels. Different causes of structural and frictional unemployment are investigated. We investigate the efficiency of the imposition of a single benefit level for all household types and the introduction of an Earned Income Tax Credit.
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Bibliographic Reference
Berg, G, Ridder, G and van Vuuren, A. 2000. 'Measuring the Equilibrium Effects of Unemployment Benefits Dispersion'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2541