IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/142166.html
   My bibliography  Save this article

Insurance-Markets Equilibrium with Double Indivisible Labor Supply

Author

Listed:
  • Vasilev, Aleksandar

Abstract

This note describes the lottery- and insurance-market equilibrium in an economy with both private and public sector employment and non-convex labor supply. In addition, when households are constrained to search for jobs only in a certain sector, the framework requires that there should be separate insurance markets: a public and a private sector one, which would pool the unemployment risk of the corresponding group of households. The unemployment insurance market segmentation is a new result in the literature and a direct consequence of the non-convexity of the labor supply in each sector and the sorting effect of the sector-type shock introduced in the model setup.

Suggested Citation

  • Vasilev, Aleksandar, 2015. "Insurance-Markets Equilibrium with Double Indivisible Labor Supply," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 91-103.
    • Handle: RePEc:zbw:espost:142166
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/142166/1/insurance_markets_Vasilev_CER_2016.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Aleksandar Vasilev, 2016. "Aggregation with a double non-convex labor supply decision: indivisible private- and public-sector hours," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 47.
    2. Vasilev, Aleksandar, 2013. "Technical Appendix to "Macroeconomic effects of public sector unions"," MPRA Paper 68235, University Library of Munich, Germany, revised Dec 2015.
    3. Hansen, Gary D., 1985. "Indivisible labor and the business cycle," Journal of Monetary Economics, Elsevier, vol. 16(3), pages 309-327, November.
    4. Vasilev, Aleksandar, 2015. "Macroeconomic effects of public-sector unions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(2), pages 101-126.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aleksandar Vasilev, 2020. "Indeterminacy and Multiplicity of Equilibria in a Two-sector Economy with a Public-sector Production," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 63(1), pages 18-43.
    2. Vasilev, Aleksandar, 2017. "Insurance-markets Equilibrium with Sequential Non-convex Private- and Public-Sector Labor Supply," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 2(2), pages 19-34.
    3. Vasilev, Aleksandar, 2018. "Insurance-markets Equilibrium with Sequential Non-convex Market-Sector- and Divisible Informal-Sector Labor Supply," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3(2(5)), pages 19-32.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vasilev, Aleksandar, 2016. "Aggregation with sequential non-convex public- and private-sector labor suply decisions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 0(2(14), Wi).
    2. Aleksandar Vasilev, 2020. "Are labor unions important for business cycle fluctuations? Lessons from Bulgaria," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 143-161, March.
    3. Aleksandar VASILEV, 2019. "Taxation And Welfare: Measuring The Effect Of Bulgaria’S 2007-08 Corporate-Personal Income Tax Reforms," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 10(2), pages 113-117.
    4. Vasilev, Aleksandar, 2018. "Is consumption-Laffer curve hump-shaped? The VAT evasion channel," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 598-609.
    5. Vasilev, Aleksandar, 2016. "Is consumption-Laffer curve hump-shaped? The role of VAT evasion," EconStor Preprints 147001, ZBW - Leibniz Information Centre for Economics.
    6. Aleksandar Vasilev & Hristina Manolova, 2019. "Wage Dynamics and Bulgaria Co-Movement and Causality," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 17(1), pages 91-127.
    7. Schreiner, Lena & Madlener, Reinhard, 2022. "Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany," Energy Economics, Elsevier, vol. 107(C).
    8. Aleksandar Vasilev, 2020. "A Real-business-cycle Model with a Stochastic Capital Share: Lessons for Bulgaria (1999–2018)," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(1), pages 107-121, February.
    9. Nadezhda GESHEVA & Aleksandar VASILEV, 2017. "Revisiting the ‘invisible hand’ hypothesis: a comparative study between Bulgaria and Germany," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 45-77, June.
    10. Jochen Mankart & Rigas Oikonomou, 2017. "Household Search and the Aggregate Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(4), pages 1735-1788.
    11. Raphael Bergoeing & Norman V. Loayza & Facundo Piguillem, 2016. "The Whole is Greater than the Sum of Its Parts: Complementary Reforms to Address Microeconomic Distortions," The World Bank Economic Review, World Bank, vol. 30(2), pages 268-305.
    12. Aleksandar Vasilev, 2015. "Welfare gains from the adoption of proportional taxation in a general-equilibrium model with a grey economy: the case of Bulgaria’s 2008 flat tax reform," Economic Change and Restructuring, Springer, vol. 48(2), pages 169-185, May.
    13. Mellár, Tamás, 2010. "Válaszút előtt a makroökonómia? [Does macroeconomics face a dilemma?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 591-611.
    14. Huang-Meier, Winifred & Freeman, Mark C., 2015. "Aggregate dividends and consumption smoothing," International Review of Financial Analysis, Elsevier, vol. 42(C), pages 324-335.
    15. James E. Hartley, 1998. "A Skeptical Note on the Importance of Technology Shocks," The American Economist, Sage Publications, vol. 42(1), pages 108-111, March.
    16. Federico Di Pace & Matthias Hertweck, 2019. "Labor Market Frictions, Monetary Policy, and Durable Goods," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 274-304, April.
    17. Raphael Bergoeing & Andrea Repetto & Raimundo Soto, 2003. "Unveiling the Micro-Dynamics of Sustained Growth in Chile," Documentos de Trabajo 248, Instituto de Economia. Pontificia Universidad Católica de Chile..
    18. Robert E. Hall, 2007. "Cyclical movements along the labor supply function," Monograph, Federal Reserve Bank of Boston, number 52.
    19. Felicitas NOWAK-LEHMANN D. & Inma MARTÍNEZ-ZARZOSO & Dierk HERZER & Stephan KLASEN & Axel DREHER, 2010. "Foreign Aid and Its Effect on Per-Capita Income (Growth) in Recipient Countries: Pitfalls and Findings from a Time Series Perspective," EcoMod2010 259600121, EcoMod.
    20. Kevin x.d. Huang & Jie Chen & Zhe Li & Jianfei Sun, 2014. "Financial Conditions and Slow Recoveries," Vanderbilt University Department of Economics Working Papers 14-00004, Vanderbilt University Department of Economics.

    More about this item

    Keywords

    indivisible labor; public employment; insurance;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:142166. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.