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Bargaining Structure and Regional Unemployment Insurance

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Author Info
Helge Sanner

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Abstract

This study examines how the size of trade unions relative to the labor force impacts on the desirability of different organizational forms of self- financing unemployment insurance (UI) for workers, firms, and with reference to an efficiency criterion. For this purpose, we respectively numerically compare the outcome of a model with a uniform payroll tax to a model where workers pay taxes according to their systematic risk of unemployment. Our results highlight the importance of the bargaining structure for the assessment of a particular UI scheme. Most importantly, it depends on the size of the unions whether effciency favors a uniform or a differentiated UI scheme.

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File URL: http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-13747
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Publisher Info
Paper provided by Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät in its series Volkswirtschaftliche Diskussionsbeiträge with number 44.

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Date of creation: 2001
Date of revision: May 2002
Publication status: Published in Labour, Vol. 17.2 (2003), pp. 229-246 (revised version)
Handle: RePEc:pot:vwldis:44

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Related research
Keywords: Unemployment Insurance Wage bargaining theory Union size

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Find related papers by JEL classification:
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
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, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Feldstein, Martin S, 1978. "The Effect of Unemployment Insurance on Temporary Layoff Unemployment," American Economic Review, American Economic Association, vol. 68(5), pages 834-46, December. [Downloadable!] (restricted)
  2. Oswald, Andrew J., 1993. "Efficient contracts are on the labour demand curve : Theory and facts," Labour Economics, Elsevier, vol. 1(1), pages 85-113, June. [Downloadable!] (restricted)
    Other versions:
  3. Pissarides, Christopher A., 1998. "The impact of employment tax cuts on unemployment and wages; The role of unemployment benefits and tax structure," European Economic Review, Elsevier, vol. 42(1), pages 155-183, January. [Downloadable!] (restricted)
    Other versions:
  4. Holmlund, Bertil & Lundborg, Per, 1999. "Wage bargaining, union membership, and the organization of unemployment insurance," Labour Economics, Elsevier, vol. 6(3), pages 397-415, September. [Downloadable!] (restricted)
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  5. Feldstein, Martin S, 1976. "Temporary Layoffs in the Theory of Unemployment," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 937-57, October. [Downloadable!] (restricted)
  6. Blanchflower, David G & Oswald, Andrew J & Sanfey, Peter, 1996. "Wages, Profits, and Rent-Sharing," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 227-51, February. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Norbert Eickhof & Kathrin Isele, 2005. "Do Economists Matter? Eine politökonomische Analyse des Einflusses wettbewerbspolitischer Leitbilder auf die europäische Fusionskontrolle," Volkswirtschaftliche Diskussionsbeiträge 74, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
  2. Do Truong Giang, 2004. "Tariffs and export subsidies in a spatial economic model," Volkswirtschaftliche Diskussionsbeiträge 65, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
  3. Wolfgang Wagner, 1999. "Vergleich von ringförmiger und sektoraler Stadtstruktur bei Nachbarschaftsexternalitäten im monozentrischen System," Volkswirtschaftliche Diskussionsbeiträge 32, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
  4. Klaus Schöler, 2007. "Gibt es eine optimale Stadtgröße?," Volkswirtschaftliche Diskussionsbeiträge 89, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
  5. Verena L. Holzer, 2004. "Does the German Renewable Energies Act fulfil Sustainable Development Objectives?," Volkswirtschaftliche Diskussionsbeiträge 73, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
  6. Norbert Eickhof, 2003. "Globalisierung, institutioneller Wettbewerb und nationale Wirtschaftspolitik," Volkswirtschaftliche Diskussionsbeiträge 52, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät. [Downloadable!]
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