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
Englisch

Erschienen in
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
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

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