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Family Job Search, Wage Bargaining, and Optimal Unemployment Insurance
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2010 (English)In: The B.E. Journal of Economic Analysis & Policy, Vol. 10, no 1, Contributions-Article 47 p.Article in journal (Refereed) Published
Abstract [en]

In this paper we develop an equilibrium search and matching model where two-person families as well as singles participate in the labor market. We show that equilibrium entails wage dispersion among equally productive risk-averse workers. Marital status as well as spousal labor market status matters for wage outcomes. In general, employed members of two-person families receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment insurance systems, recognizing the role of spousal employment as a partial substitute for public insurance. The optimal system involves benefit differentiation based on marital status as well as spousal labor market status.

Place, publisher, year, edition, pages
2010. Vol. 10, no 1, Contributions-Article 47 p.
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-132472DOI: 10.2202/1935-1682.2501OAI: oai:DiVA.org:uu-132472DiVA: diva2:358118
Available from: 2010-10-20 Created: 2010-10-20 Last updated: 2010-10-21Bibliographically approved

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