Borrowing constraints, the cost of precautionary saving and unemployment insurance

Arbeitspapier

Job losers exhibit significant heterogeneity in wealth holdings and in the marginal propensity to consume transitory income. We consider potential sources of this heterogeneity, whether (some of) the unemployed face borrowing constraints, and the implications of this heterogeneity for unemployment insurance. We show theoretically how the optimal benefit can depend significantly on borrowing constraints, and on other (nonprecautionary) savings motives. We report empirical evidence that (i) a quarter of job losers cannot borrow for current consumption, (ii) this constraint is binding for a much smaller fraction, and (iii) that \'excess sensitivity\' is not limited to the constrained.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFS Working Papers ; No. 05/02

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Arbeitslosigkeit ; Verschuldungsrestriktion ; Haushaltseinkommen ; Sparen ; Lebenszyklus ; Kanada

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Crossley, Thomas F. ; Low, Hamish
• Ereignis: Veröffentlichung
• (wer): Institute for Fiscal Studies (IFS)
• (wo): London
• (wann): 2005

Weitere Informationen

• DOI: doi:10.1920/wp.ifs.2005.0502
• Handle: http://hdl.handle.net/10419/71536
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ