@TechReport{iza:izadps:dp9967,
            	author={Blumkin, Tomer and Danziger, Leif and Yashiv, Eran},
            	title={Optimal Unemployment Benefit Policy and the Firm Productivity Distribution},
            	year={2016},
	month={May},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9967},
            	url={https://www.iza.org/publications/dp9967},
	abstract={This paper provides a novel justification for a declining time profile of unemployment benefits that does not rely on moral hazard or consumption-smoothing considerations. We consider a simple search environment with homogeneous workers and low- and high-productivity firms. By introducing a declining time profile of benefits, the government can affect the equilibrium wage profile in a manner that enhances the sorting of workers across low- and high-productivity firms. We demonstrate that optimal government policy depends on the dispersion and skewness of the firms' productivity distribution.},
	keywords={unemployment benefit policy;declining unemployment benefits;productivity distribution;skewness;dispersion},
            }