2026-06-06T10:24:30Zhttps://uvadoc.uva.es/oai/request

oai:uvadoc.uva.es:10324/586392023-02-13T20:00:30Zcom_10324_1160com_10324_931com_10324_894col_10324_1314

Martín Román, Ángel Luis 2022 Producción Científica This paper identifies and analyses a new effect related to the cyclical behaviour of labour supply: the Entitled-Worker Effect (EWE). This effect is different from the well-known Added-Worker Effect (AWE) and Discouraged-Worker Effect (DWE). The EWE is a consequence of one of the most important labour institutions: the unemployment benefit (UB). We develop a model with uncertainty about the results of the job-seeking and transaction costs linked to such a search process, showing that a kind of moral hazard appears. This creates new incentives for workers and produces an additional counter-cyclical pressure on aggregate labour supply, but with a different foundation from that of the AWE. We present empirical evidence supporting the EWE for the Spanish case. As a forward-looking conclusion, policymakers should rethink their political actions in the future as unemployment might be overstated, particularly in those countries with generous UB systems. application/pdf https://uvadoc.uva.es/handle/10324/58639 eng Elsevier 53 Ciencias Económicas Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect info:eu-repo/semantics/article TEXT UVaDOC. Repositorio Documental de la Universidad de Valladolid Hispana