Wage bargaining, union membership, and the organization of unemployment insurance
AbstractThe paper offers a theoretical analysis of a labor market institution known as the Gent system, which is a system where unions run unemployment insurance (UI) through government-subsidized UI funds. This sytem is practiced in four Nordic countries with comparatively very high unionization rates. The analysis shows that the Gent system is more conducive to unionization than a compulsory UI system if the Gent system is heavily subsidized by the government or if workers are strongly risk averse. Moreover, a rise in the share of benefits financed by union members is likely to reduce wages as well as union membership.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 6 (1999)
Issue (Month): 3 (September)
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Web page: http://www.elsevier.com/locate/labeco
Other versions of this item:
- 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.
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
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