1.

Record Nr.

UNINA9910973828203321

Autore

Roca Mauro

Titolo

Search in the Labor Market under Imperfectly Insurable Income Risk / / Mauro Roca

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2009

ISBN

9786612843983

9781462358793

1462358799

9781452731902

145273190X

9781282843981

1282843982

9781451873351

1451873352

Edizione

[1st ed.]

Descrizione fisica

38 p

Collana

IMF Working Papers

Disciplina

331.1

Soggetti

Unemployment

Labor market

Unemployment insurance

Actuarial Studies

Consumption

Demand and Supply of Labor: General

Economics

Income economics

Insurance & actuarial studies

Insurance Companies

Insurance

Labor markets

Labor

Labour

Macroeconomics

Macroeconomics: Consumption

Saving

Unemployment: Models, Duration, Incidence, and Job Search

Wages

Wages, Compensation, and Labor Costs: General

Wealth

United States



Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"September 2009."

Nota di contenuto

Cover Page -- Title Page -- Copyright Page -- Contents -- I. Introduction -- II. The Model -- A. Labor Market -- B. Consumers -- C. Firms -- 1. Wage determination -- D. Government -- E. Stationary Equilibrium -- III. Solution method -- A. Fast-turnover limit -- B. Approximation -- 1. Steady state -- 2. Approximation around steady state -- IV. Quantitative analysis -- A. Calibration -- B. The effects of idiosyncratic risk -- 1. Effects of Idiosyncratic Risk on the Labor Market -- 1. Approximation to Consumption Functions -- 2. Effects of Idiosyncratic Risk on Consumption and Capital -- C. Optimal replacement rate -- 2. Variations in Welfare -- 3. Effects of Unemployment Insurance -- 4. Effects of Idiosyncratic Risk -- V. Conclusions -- I. Derivation of the solution to the wage bargaining -- II. Fast-turnover limit -- A. Derivation of the Euler condition -- B. Derivation of the wage equation -- III. Approximation around the steady state -- A. Response to individual asset holdings -- B. Response to the length of the time interval Δ -- References -- Footnotes.

Sommario/riassunto

This paper develops a general equilibrium model with unemployment and noncooperative wage determination to analyze the importance of incomplete markets when risk-averse agents are subject to idiosyncratic employment shocks. A version of the model calibrated to the U.S. shows that market incompleteness affects individual behavior and aggregate conditions: it reduces wages and unemployment but increases vacancies. Additionally, the model explains the average level of unemployment insurance observed in the U.S. A key mechanism is the joint influence of imperfect insurance and risk aversion in the wage bargaining. The paper also proposes a novel solution to solve this heterogeneous-agent model.