2026-06-12T16:48:53Zhttps://uvadoc.uva.es/oai/request

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

00925njm 22002777a 4500 dc Martín Román, Ángel Luis author 2022 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. Economic Modelling, 2022, vol, 110, p. 105812 0264-9993 https://uvadoc.uva.es/handle/10324/58639 10.1016/j.econmod.2022.105812 105812 Economic Modelling 110 Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect