I will present a zoom seminar at the Universidad del CEMA, Buenos Aires, Argentina on May 22, 2020 at 1pm, Brasilia (and Buenos Aires time), 11 am CDT.
Please find here the list of UCEMA’s “Seminarios de Análisis Económico”:
Please find below a copy of UCEMA’s announcement. The virtual seminar is open access, but you need to register in order to be able to access it. To register, click here.
Análisis Económico: Job security, attitude towards risk and preference for social insurance: A note on Earnings inequality and welfare spending’ by Moene and Wallerstein
In a seminal 2003 article, Karl Moene and Michael Wallerstein show that richer citizens support higher spending in social policies targeting the unemployed, whereas they prefer lower spending in policies targeting the employed. This paper argues that this result is driven by two strong assumptions: citizens’ coefficient of relative risk aversion (CRRA) is greater than one, and all citizens face the same probability of losing their jobs. By modelling the stylized fact that job security is positively correlated with income, we show that much higher levels of risk aversion may be needed for the rich to support higher spending in unemployment policy. Furthermore, a significant change in the distribution of job security – due to a sudden economic crisis, for example – may alter the way inequality affects preferences for social insurance. A case study for Brazil before and after the 2008 World Financial Crisis illustrates of such social preference change.
Mauricio Bugarin: University of Brasilia and Vanderbilt University
El seminario será dictado en inglés sin traducción simultánea y está basado un trabajo en co autoría con Yasushi Hazama ( Institute of Developing Economies, IDE/JETRO, Japón)