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Wage Bargaining, Union Membership, and the Organization of Unemployment Insurance

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Author Info
Holmlund, Bertil () (Department of Economics)
Lundborg, Per (FIEF)

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Abstract

The 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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Publisher Info
Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1996:17.

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Length: 36 pages
Date of creation: 15 Sep 1996
Date of revision:
Publication status: Published in Labour Economics, 1999, pages 397-415.
Handle: RePEc:hhs:uunewp:1996_017

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Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Related research
Keywords: wage bargaining; union membership; unemployment insurance;

Other versions of this item:

Find related papers by JEL classification:
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

Cited by:
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  1. 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). [Downloadable!]
  2. Daniele Checchi, 2000. "Time series evidence on union densities in European countries," Departemental Working Papers 2000-10, Department of Economics University of Milan Italy. [Downloadable!]
  3. Goerke, Laszlo & Pannenberg, Markus, 2003. "Norm-Based Trade Union Membership: Evidence for Germany," IZA Discussion Papers 962, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Helge Sanner, 2001. "Bargaining Structure and Regional Unemployment Insurance," Volkswirtschaftliche Diskussionsbeiträge 44, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät, revised May 2002. [Downloadable!]
    Other versions:
  5. Marja-Liisa Halko, 2004. "Buffer funding of unemployment insurance in a dynamic labour union model," Macroeconomics 0404030, EconWPA. [Downloadable!]
  6. Petri Böckerman & Roope Uusitalo, 2005. "Union membership and the erosion of the Ghent system: Lessons from Finland," Labor and Demography 0508008, EconWPA. [Downloadable!]
  7. 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. [Downloadable!]
  8. Halko, Marja-Liisa, 2003. "Buffer funding of unemployment insurance in a dynamic labour union model," Research Discussion Papers 24/2003, Bank of Finland. [Downloadable!]
  9. Kari O. E. Alho, 2006. "Labour Market Institutions and the Effectiveness of Tax and Benefit Policies in Enchancing Employment: A General Equilibrium Analysis," Discussion Papers 1008, The Research Institute of the Finnish Economy. [Downloadable!]
  10. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Departemental Working Papers 2002-16, Department of Economics University of Milan Italy. [Downloadable!]
    Other versions:
  11. Erling Barth & Karl O. Moene, 2009. "The Equality Multiplier," NBER Working Papers 15076, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Statistics
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