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Duration Dependent Unemployment Benefits in Trade Union Theory

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Author Info

  • Claus Thustrup Hansen

    (University of Copenhagen Institute of Economics)

  • Hans Jørgen Jacobsen

    (University of Copenhagen Institute of Economics)

Abstract

The basic trade union model is extended to allow for a more sophisticated unemployment benefit system consisting of two benefit levels, one for short-term and one for long-term unemployed, and a rule determining whether an unemployed is short- or long-term. The purpose of this extension is twofold; to get a more realistic analysis of the actual benefit systems in most countries, and to analyse alternative reforms to the traditional one of changing a uniform benefit level. Reforms that rebalance the benefit rates holding constant either expected income of an unemployed, aggregate benefit expenditures, or expected income of a union member can reduce unemployment.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 98-08.

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Length: 26 pages + tables
Date of creation: Jun 1998
Date of revision:
Publication status: Published in: European Economic Review 46(7) 2002, 1229-1251
Handle: RePEc:kud:kuiedp:9808

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Related research

Keywords: unemployment benefits; trade unions; unemployment;

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References

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  1. Fredriksson, Peter & Holmlund, Bertil, 2001. "Optimal Unemployment Insurance in Search Equilibrium," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(2), pages 370-99, April.
  2. Shavell, Steven & Weiss, Laurence, 1979. "The Optimal Payment of Unemployment Insurance Benefits over Time," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(6), pages 1347-62, December.
  3. Katz, Lawrence F. & Meyer, Bruce D., 1990. "The impact of the potential duration of unemployment benefits on the duration of unemployment," Journal of Public Economics, Elsevier, Elsevier, vol. 41(1), pages 45-72, February.
  4. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
  5. Cahuc, Pierre & Lehmann, Etienne, 2000. "Should unemployment benefits decrease with the unemployment spell?," Journal of Public Economics, Elsevier, Elsevier, vol. 77(1), pages 135-153, July.
  6. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 29(4), pages 1679-1727, December.
  7. Burdett, Kenneth, 1979. "Unemployment Insurance Payments as a Search Subsidy: A Theoretical Analysis," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 17(3), pages 333-43, July.
  8. Kreiner, Claus Thustrup & Whitta-Jacobsen, Hans Jorgen, 2002. "Duration dependent unemployment benefits in trade union theory," European Economic Review, Elsevier, Elsevier, vol. 46(7), pages 1229-1251, July.
  9. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 87(2), pages 160-93.
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Citations

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Cited by:
  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).
  2. Cahuc, Pierre & Lehmann, Etienne, 2000. "Should unemployment benefits decrease with the unemployment spell?," Journal of Public Economics, Elsevier, Elsevier, vol. 77(1), pages 135-153, July.
  3. Goerke, Laszlo & Madsen, Jakob B., 2003. "Earnings-related unemployment benefits and unemployment," Economic Systems, Elsevier, Elsevier, vol. 27(1), pages 41-62, March.
  4. Bruno Van Der Linden, 2003. "Unemployment Insurance and Training in an Equilibrium Matching Model with Heterogeneous Agents," Working Papers, Centre de Recherche en Economie et Statistique 2003-01, Centre de Recherche en Economie et Statistique.
  5. repec:ebl:ecbull:v:10:y:2005:i:2:p:1-10 is not listed on IDEAS
  6. Claus Thustrup Hansen & Hans Jørgen Jacobsen, 1998. "Duration Dependent Unemployment Benefits in Trade Union Theory," Discussion Papers, University of Copenhagen. Department of Economics 98-08, University of Copenhagen. Department of Economics.
  7. König, Jan & Skupnik, Christoph, 2012. "Labor market integration of migrants: Hidden costs and benefits in two-tier welfare states," Discussion Papers 2012/5, Free University Berlin, School of Business & Economics.

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