Unemployment Insurance Savings Accounts and Collective Wage Determination
AbstractUnemployment Insurance Savings Accounts (UISAs) entitle workers to unemployment benefits at the expense of future pension payments. Therefore, such accounts make unemployment less attractive, intensify job search, and raise employment. In the present paper the wage and employment consequences of UISAs are investigated in a model of collective wage determination. In the basic set-up, UISAs induce a trade union to lower wages. This effect can also arise if (1) balanced-budget repercussions are taken into account, (2) individual job search is incorporated, and (3) wage-dependent pensions are allowed for. However, the requirements for negative wage effects to arise become stricter than in the base model. Thus, collective bargaining creates additional impediments for the positive employment consequences of UISAs.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3141.
Length: 33 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published as: The Effects of Unemployment Insurance Savings Accounts in the Presence of Collective Bargaining Contracts, pp. 199-226, in: Arbeitsverträge – Wirtschaftswissenschaftliches Seminar Ottobeuren, Vol. 37, Eds.: W. Franz, H.-J. Ramser, M. Stadler, Mohr Siebeck: Tübingen, 2008
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Find related papers by JEL classification:
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-24 (All new papers)
- NEP-DGE-2007-11-24 (Dynamic General Equilibrium)
- NEP-IAS-2007-11-24 (Insurance Economics)
- NEP-LAB-2007-11-24 (Labour Economics)
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