Optimal design of unemployment insurance for artists

This project was concerned with France’s system of subsidies for unemployed artists. Lack of such systems in other countries are usually due to the fact that artists supply their labour in self-employment or via temporary/non-standard contracts which are considered hard to regulate. Additional concerns for policy makers included the potential moral hazard problem and the cost of eligibility verification.

The authors aimed to build a model for artists’ insurance based on the French case and their previous work. Key questions here included: firstly, what are the inefficiencies induced by the lack of insurance? Secondly, is a self-financing, balanced-budget system able to implement the best market outcome? Thirdly, how does the provision of insurance affects sorting of individuals into "creative occupations’’.