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Gaillard, Alexandre
and Kankanamge, Sumudu
(2021)
Entrepreneurship and Labor Market Mobility: the Role of Unemployment Insurance.
TSE Working Paper, n. 21-1187, Toulouse
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Abstract
We evaluate the effects of unemployment insurance variations in a general equilibrium
occupational choice model of entrepreneurship. We establish that the occupational flow
from unemployment to entrepreneurship is remarkably sensitive to unemployment insurance
generosity, corroborating our empirical findings. Beyond direct effects on unemployment,
we find large reallocations between employment and entrepreneurship relative
to changes in generosity. They contribute to an empirically consistent stable aggregate
employment rate, despite increasing unemployment. We show that an insurance coverage
effect, i.e. a change in the relative riskiness between occupations with respect to generosity,
is a key driver of our results.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | January 2021 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Entrepreneurship, Unemployment Insurance, Labor Market Mobility |
| JEL Classification: | E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination J65 - Unemployment Insurance; Severance Pay; Plant Closings |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 08 Mar 2021 09:03 |
| Last Modified: | 08 Mar 2021 09:03 |
| OAI Identifier: | oai:tse-fr.eu:125253 |
| URI: | https://publications.ut-capitole.fr/id/eprint/42410 |
