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Unemployment Insurance and Union Wage Setting

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Author Info

  • Holmlund, Bertil
  • Lundborg, Per

Abstract

The authors examine alternative systems of financing unemployment insurance benefits in an economy with wage-sett ing unions, where, as in some Nordic countries, each union runs its o wn unemployment insurance system. It is shown that a higher lump-sum grant to the union's unemployment insurance fund increases employment , whereas higher marginal subsidies have ambiguous effects. An unempl oyment insurance tax on wages has no effect on employment, whereas an unemployment insurance tax on profits unambiguously increases employ ment. The authors also analyze a case where wages are set at the firm level and premiums at the industry level. Copyright 1988 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 90 (1988)
Issue (Month): 2 ()
Pages: 161-72

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Handle: RePEc:bla:scandj:v:90:y:1988:i:2:p:161-72

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Holmlund, Bertil & Lundborg, Per, 1996. "Wage Bargaining, Union Membership, and the Organization of Unemployment Insurance," Working Paper Series 1996:17, Uppsala University, Department of Economics.
  2. Goerke, Laszlo & Madsen, Jakob B., 2003. "Earnings-related unemployment benefits and unemployment," Economic Systems, Elsevier, vol. 27(1), pages 41-62, March.
  3. Eric Levin & Thomas Moutos, 1991. "Unemployment insurance and union bargaining — an insider-outsider approach," Journal of Economics, Springer, vol. 53(3), pages 271-284, October.
  4. Burda, Michael C., 1997. "Corporatism, labor unions and the safety net," European Economic Review, Elsevier, vol. 41(3-5), pages 635-646, April.
  5. Julia Fath & Clemens Fuest, 2005. "Experience Rating of Unemployment Insurance in the US: A Model for Europe?," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 3(2), pages 45-50, 07.
  6. Calmfors, Lars, 1995. "Labour market policy and unemployment," European Economic Review, Elsevier, vol. 39(3-4), pages 583-592, April.
  7. Sven Wehke, 2007. "Union Wages, Hours of Work and the Effectiveness of Partial Coordination Agreements," FEMM Working Papers 07019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
  8. Dittrich, Marcus, 2006. "Welfare Effects of Union Bargaining Centralisation in a Two-Sector Economy," MPRA Paper 11, University Library of Munich, Germany, revised Sep 2006.
  9. Pekka Sinko, 2003. "Subsidizing vs. Experience Rating of Unemployment Insurance in Unionized Labor Markets," Discussion Papers 319, Government Institute for Economic Research Finland (VATT).
  10. Agell, Jonas, 2003. "Efficiency and Equality in the Labour Market," Research Papers in Economics 2003:11, Stockholm University, Department of Economics.
  11. Anders Forslund & Alan B. Krueger, 2008. "Did Active Labour Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," Working Papers 1035, Princeton University, Department of Economics, Center for Economic Policy Studies..
  12. Goerke, Laszlo & Madsen, Jakob B., 2003. "Earnings-Related Unemployment Benefits in a Unionised Economy," IZA Discussion Papers 701, Institute for the Study of Labor (IZA).

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