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The Impact of the Unemployment Benefit System on International Spillover Effects

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  • Beissinger, Thomas

    ()
    (University of Hohenheim)

  • Buesse, Oliver

    (University of Regensburg)

Abstract

Based on a two-country model it is scrutinized how the structure of the unemployment benefit system affects the consequences of idiosyncratic labor market shocks on real wages and unemployment in other countries. International spillover effects are caused by changes in world real income. The paper provides new insights on how changes in world real income affect labor demand and the wage bargaining process. The analysis of the interaction of shock spillovers and benefit system focuses on two-tier as well as pure earnings-related and flat-rate benefit systems.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 656.

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Length: 35 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:iza:izadps:dp656

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Keywords: benefit system; unemployment; real wages; open economy; wage bargaining;

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References

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  1. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
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  8. Heer, Burkhard & Morgenstern, Albrecht, 2000. "Indexation Of Unemployment Benefits To Previous Earnings, Employment And Wages," Discussion Papers in Economics 30, University of Munich, Department of Economics.
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  13. Christopher A. Pissarides, 1997. "The Impact of Employment Tax Cuts on Unemployment and Wages: The Role of Unemployment Benefits and Tax Structure," CEP Discussion Papers dp0361, Centre for Economic Performance, LSE.
  14. Thomas Beissinger & Oliver Büsse, 2001. "Bismarck versus Beveridge: Which Unemployment Compensation System is more Prone to Labor Market Shocks?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(1), pages 78-, December.
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  19. Manning, Alan, 1998. " Comment on B. Holmlund, "Unemployment Insurance in Theory and Practice."," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 143-45, March.
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Cited by:
  1. Gabriel Felbermayr & Mario Larch & Wolfgang Lechthaler, 2009. "Unemployment in an Interdependent World," Kiel Working Papers 1540, Kiel Institute for the World Economy.
  2. Sebastian Weber, 2006. "Labor Market Structures, Trade and their Effect on Unemployment: A Theoretical Analysis and Empirical Investigation," IHEID Working Papers 22-2006, Economics Section, The Graduate Institute of International Studies.

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