A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Unemployment benefits, risk aversion, and migration incentives
Abstract. With reference to the EU enlargement, a framework is derived which allows the study of the effect of unemployment benefits on the migration decision. While benefits simply increase the expected gain for risk neutral individuals, they work as an insurance device for risk averse migrants; the results for the two groups might differ. Thus, the migration decision is reformulated as monetary lottery. Unsurprisingly, the paper finds that risk averse individuals are less likely to engage in migration. Yet, introducing unemployment benefits also makes them select a different set of countries. The implications of selection and sorting, however, depend crucially on the link between risk aversion and economically important personal characteristics. It is also shown that unemployment benefits give rise to intertemporal trade-offs in migration returns.
Unemployment benefits, risk aversion, and migration incentives
Abstract. With reference to the EU enlargement, a framework is derived which allows the study of the effect of unemployment benefits on the migration decision. While benefits simply increase the expected gain for risk neutral individuals, they work as an insurance device for risk averse migrants; the results for the two groups might differ. Thus, the migration decision is reformulated as monetary lottery. Unsurprisingly, the paper finds that risk averse individuals are less likely to engage in migration. Yet, introducing unemployment benefits also makes them select a different set of countries. The implications of selection and sorting, however, depend crucially on the link between risk aversion and economically important personal characteristics. It is also shown that unemployment benefits give rise to intertemporal trade-offs in migration returns.
Unemployment benefits, risk aversion, and migration incentives
Heitmueller, Axel (author)
2005
Article (Journal)
English
Equilibrium unemployment and the duration of unemployment benefits
| Online Contents | 2010
Equilibrium unemployment and the duration of unemployment benefits
| Online Contents | 2010
Institutional Repositories: Benefits and incentives
| British Library Online Contents | 2012
Trade, migration and regional unemployment
| Online Contents | 2005