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The Empirical Study of the Unemployment Insurance Expenditures on Urban Workers' Re-employment

Author: SunZuo
Tutor: LiuZhiZhong
School: Hunan University
Course: Western Economics
Keywords: unemployment insurance re-employment Job Search DMP model panelcointegration
CLC: F249.21
Type: Master's thesis
Year: 2012
Downloads: 59
Quote: 0
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Abstract


Factors such as the level of unemployment insurance benefits and paymentdeadline have both promoting effects and inhibitory effects on re-employmentbehavior. unemployment insurance benefits protect the unemployed persons’ basiclivelihood during the periods of unemployment,and make them look for work withoutworries. The subsidies of vocational training and occupation introduction service areconducive to improve the human capital of the unemployed persons,so find a suitablejob as soon as possible. However, according to the game analysis betweenGovernment and the unemployed labor force, moral hazard generated by theunemployment insurance is easy to make the unemployed to generate welfaredependency, and that the unemployed would prefer unemployment、 delayemployment or hidden employment to receive unemployment insurance payments,rather than to find a job. Income-leisure model that introduced unemploymentinsurance illustrates that once unemployed people will lose the eligibility to receiveunemployment insurance payments, their job desire becomes strong, they will find ajob with more efforts;but as the income effect and substitution effect generated by thechange of unemployment insurance and wage rate, if improve the unemploymentinsurance benefits and extend the payment period will extend the unemploymentduration, reduce the enthusiasm of job search and make reemployment rate declined.This paper uses2001-2010data of China’s30provinces, municipalities andautonomous regions, by adding two control variables, the rate of economic growthand the proportion of tertiary industry,building panel cointegration equation ofunemployment insurance fund expenditures to the re-employment rate the, found thatthe level of unemployment insurance has positive effect on the re-employment rate,and the effect is significant,in different areas the effects are different. So Chinashould use the unemployment insurance fund reasonably, adjust the conditions andduration of unemployment insurance payment, and increase the level ofunemployment insurance appropriately, give full play to the function of there-employment.

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CLC: > Economic > Economic planning and management > Labor Economics > Countries in the world of labor economic profile > China > Labor force
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