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UID:8c214d9ff4610d55b8db0593377e83d7
CATEGORIES:Seminars
CREATED:20240229T115847
SUMMARY:Antoine Ferey - Sciences Po
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:\n\nRedistribution and Unemployment Insurance \n\n\nAbstract:\nThis paper a
 nalyzes the interactions between redistribution and unemployment insurance 
 policies and their implications for the optimal design of tax-benefit syste
 ms. In a setting where individuals with different earnings abilities are ex
 posed to unemployment risk on the labor market, I characterize the optimal 
 income tax schedule and the optimal unemployment benefit schedule in terms 
 of empirically estimable sufficient statistics. I provide a Pareto-efficien
 cy condition for tax-benefit systems that implies a tight link between opti
 mal redistribution and optimal unemployment insurance: the steeper the prof
 ile of income taxes is, the flatter the profile of unemployment benefits sh
 ould be, and vice versa. Optimal replacement rates are therefore monotonica
 lly decreasing with earnings, from 1 at the bottom of the earnings distribu
 tion to 0 at the top, and redistribution through unemployment benefits is e
 fficient. Empirical applications show that these interactions between redis
 tribution and unemployment insurance have important quantitative implicatio
 ns.&nbsp;\n
DTSTAMP:20260426T044749Z
DTSTART:20240415T143000Z
DTEND:20240415T160000Z
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