Por favor, use este identificador para citar o enlazar este ítem:https://uvadoc.uva.es/handle/10324/58639
Título
Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect
Autor
Año del Documento
2022
Editorial
Elsevier
Descripción
Producción Científica
Documento Fuente
Economic Modelling, 2022, vol, 110, p. 105812
Resumo
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.
Materias Unesco
53 Ciencias Económicas
Palabras Clave
Labour force participation
Business cycle
Unemployment
Added-worker effect
Discouraged-worker effect
Unemployment benefit
ISSN
0264-9993
Revisión por pares
SI
Patrocinador
Ministerio de Ciencia e Innovación (projects ECO 2017-82227-P and PID2020-112509GB-I00)
Version del Editor
Propietario de los Derechos
© 2022 The Author(s)
Idioma
eng
Tipo de versión
info:eu-repo/semantics/publishedVersion
Derechos
openAccess
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