Unemployment Insurance Eligibility and Wage Dispersion
Unemployment insurance eligibility, entitlement premium, wage dispersion, wage posting
Unemployment insurance (UI) systems only distribute benefits to workers whose prior employment spell was sufficiently long. This feature alone can generate wage dispersion in the labor market among otherwise homogenous workers and firms. In our price-posting environment, changes to the UI system have surprising consequences. For instance, more generous benefits raise the wages received by ineligible workers, but lower them for the eligible workers. Increasing the minimum spell for eligibility has the same effect, assisting the very workers currently excluded.
BYU ScholarsArchive Citation
Platt, Brennan C., "Unemployment Insurance Eligibility and Wage Dispersion" (2020). Faculty Publications. 5794.
Family, Home, and Social Sciences
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