We examine the relationship between unemployment benefits and using Swedish regional data. To estimate effect of an increase in insurance (UI) on we exploit ceiling UI benefits. The benefit ceiling, coupled with fact that there are wage differentials, implies generosity varies regionally. More importantly, actual within region over time due to variations ceiling. find fairly robust evidence sug...

This paper explores the labor supply effects of a large-scale policy change in the Austrian disability insurance program, which tightened eligibility criteria for men above a certain age. Using administrative data on the universe of Austrian private-sector employees, the results of difference-in-difference type regressions suggest a substantial and statistically significant decline in disabilit...

This paper studies the optimal joint design of disability insurance and unemployment insurance in an environment with moral hazard, when health status is private information, and cyclical fluctuations. I show how disability benefits and unemployment benefits vary with aggregate economic conditions in an optimal contract. In a special case of the model, I first show the optimal contract can be s...

*The original version of this paper was written for the Office of ASPER of the U.S. Department of Labor in 1975. This is a revision of ‘Unemployment insurance as a social insurance program’ presented at the ISPE Conference on Social Insurance held near Tokyo. Japan in May 1977. I would like to thank participants at this conference, M.A. Baily, G.S. Fields and the referees for helpful comments. ...