03525nam 2200613Ia 450 991081762360332120200520144314.01-4623-5879-91-4527-3190-X97866128439831-282-84398-21-4518-7335-2(CKB)3170000000055338(SSID)ssj0000943059(PQKBManifestationID)11558965(PQKBTitleCode)TC0000943059(PQKBWorkID)10975248(PQKB)11491964(OCoLC)449931755(MiAaPQ)EBC1608809(IMF)WPIEE2009188(EXLCZ)99317000000005533820090903d2009 uf 0engurcn|||||||||txtccrSearch in the labor market under imperfectly insurable income risk /prepared by Mauro Roca1st ed.Washington, D.C. International Monetary Fund, Research Dept.200938 pIMF working paper ;WP/09/188"September 2009."1-4519-1760-0 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.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.IMF working paper ;WP/09/188.UnemploymentLabor marketUnemployment insuranceUnemployment.Labor market.Unemployment insurance.331.1Roca Mauro1599343International Monetary Fund.Research Dept.MiAaPQMiAaPQMiAaPQBOOK9910817623603321Search in the Labor Market under Imperfectly Insurable Income Risk3921978UNINA