Rising UI benefits over time

Tomer Blumkin, Efraim Sadka*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We re-examine a key result in the optimal UI literature that benefits should decline over time. We show that when the population is heterogeneous, Pareto-efficiency may call for multiple payment schedules, some with benefits that fall over time and some with benefits that rise over time.

Original languageEnglish
Pages (from-to)501-517
Number of pages17
JournalInternational Tax and Public Finance
Issue number5
StatePublished - 2010


  • Inequality
  • Optimal taxation
  • Re-distribution
  • Unemployment insurance


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