Briefing
Modelling Unemployment Insurance in the Real World
Abstract: We create an economic model of unemployment insurance designed to accurately capture the life cycle of workers. A socially optimal unemployment insurance program would replace 63 percent of a worker’s income for six months after termination. This result bridges the previous disagreement between partial and general equilibrium models of unemployment insurance.
Access Documents
File(s):
File format is text/html
https://www.richmondfed.org/publications/research/economic_brief/2026/eb_26-16
Description: Briefing
Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2026-05-20
Volume: 26
Issue: 16