Unemployment insurance and the business cycle*
构建了一个均衡模型，研究加拿大年轻男性劳动力市场中经济周期、失业保险与劳动力市场的相互作用，并分析了1990年代失业保险改革对失业率、裁员和召回率的长期影响。
An equilibrium model is developed to study the interaction of the business cycle, unemployment insurance (UI), and the labor market for young men in Canada. The model combines optimal job offer, layoff, and recall decisions within a numerically solved and restricted Bayesian–Nash equilibrium. We consider the long‐run implications of changes made to unemployment insurance in Canada during the 1990s. The changes lead to equilibrium increases in average rates of unemployment, layoffs, and recalls. Eliminating UI lowers the equilibrium unemployment rate and average observed earnings. UI policy affects the timing of cycles of endogenous outcomes relative to the productivity cycle.