TY  - RPRT
        AU  - Hassler, John
AU  - Mora, José V. Rodriguez
        TI  - Should UI Benefits Really Fall Over Time?
        PY  - 2002/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 622
        UR  - https://www.iza.org/publications/dp622
        AB  - The issue of whether unemployment benefits should increase or decrease over the
unemployment spell is analyzed in a tractable model allowing moral hazard, adverse
selection and hidden saving. Analytical results show that when the search productivity of
unemployed is constant over the unemployment spell, benefits should typically increase or be
constant. The only exception is when there is moral hazard and no hidden saving. In general,
adverse selection problems tend to generate increasing benefits, moral hazard problems
constant benefits and decreasing search productivity falling benefits.
        KW  - moral hazard
KW  - unemployment insurance
KW  - adverse selection
        ER  -