Arbeitspapier
Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect
This paper identifies and analyses a new effect related to the cyclical behavior of labor 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 labor institutions: the unemployment benefit (UB). We develop a model with uncertainty about the results of the job seeking and transactions costs linked to such a search process in which a kind of moral hazard appears. This creates new incentives for workers and produces an additional counter-cyclical pressure on aggregate labor supply, but with a different foundation from that of the AWE. Finally, we show some empirical evidence supporting the EWE for the Spanish case.
- Sprache
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Englisch
- Erschienen in
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Series: GLO Discussion Paper ; No. 707
- Klassifikation
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Social Security and Public Pensions
Time Allocation and Labor Supply
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings
- Thema
-
Labor force participation
Business Cycle
Unemployment
Added-worker effect
Discouraged-worker effect
Unemployment Benefit
- Ereignis
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Geistige Schöpfung
- (wer)
-
Martín-Román, Ángel L.
- Ereignis
-
Veröffentlichung
- (wer)
-
Global Labor Organization (GLO)
- (wo)
-
Essen
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Martín-Román, Ángel L.
- Global Labor Organization (GLO)
Entstanden
- 2020