TY  - JOUR
AU  - Atkeson,Andrew
AU  - Kehoe,Patrick J.
TI  - Social Insurance and Transition
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4411
PY  - 1993
Y2  - July 1993
UR  - http://www.nber.org/papers/w4411
L1  - http://www.nber.org/papers/w4411.pdf
N1  - Author contact info:
Andrew Atkeson
Bunche Hall 9381
Department of Economics
UCLA
Box 951477
Los Angeles, CA  90095-1477
Tel: 866/312-9770
Fax: 310/825-9528
E-Mail: andy@atkeson.net

Patrick Kehoe
Research Department
Federal Reserve Bank of Minneapolis
90 Hennepin Avenue
Minneapolis, MN  55480-0291
Tel: 612/204-5525
Fax: 612/204-5515
E-Mail: pkehoe@res.mpls.frb.fed.us
AB  - We study the general equilibrium effects of social insurance on the transition in a model in which the process of moving workers from matches in the state sector to new matches in the private sector takes time and involves uncertainty. We find that adding social insurance may slow transition. When there are incentive problems in this rematching process, the optimal social insurance scheme may involve forced layoffs and involuntary unemployment.
ER  -