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The welfare effects of mobility restrictions

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    SYSNO ASEP0156074
    Document TypeJ - Journal Article
    R&D Document TypeJournal Article
    Subsidiary JOstatní články
    TitleThe welfare effects of mobility restrictions
    Author(s) Jeong, Byeongju (NHU-N) RID
    Source TitleReview of Economic Dynamics. - : Elsevier - ISSN 1094-2025
    Roč. 6, č. 3 (2003), s. 685-696
    Number of pages12 s.
    Languageeng - English
    CountryUS - United States
    Keywordsmobility restriction ; partnership ; search
    Subject RIVAH - Economics
    CEZAV0Z7085904 - NHU-N
    DOI https://doi.org/10.1016/S1094-2025(03)00015-2
    AnnotationMobility restrictions (e.g., severance payment, life-long tenure, and divorce ban) are widely observed. I present a partnership model that highlights the 'break-up externality' (i.e., the negative effect of a person's break-up decision on his current partner). Under this externality, there is too much searching for new partners and too much breaking-up of existing partnerships. Restrictions such as a break-up payment and break-up ban can reduce the levels of searching and breaking-up and improve welfare. Thus the paper rationalizes mobility restrictions as welfare-improving arrangements.
    WorkplaceEconomics Institute
    ContactTomáš Pavela, pavela@cerge-ei.cz, Tel.: 224 005 122
    Year of Publishing2004

Number of the records: 1  

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