The Unemployment Benefit System: a Redistributive or an Insurance Institution?
AbstractWe analyze the effects of the unemployment benefit system on the economy. In particular, we focus on both the tax structure and the unemployment benefits composition. We show that if the unemployment benefit system is only paid by firms, then employment and production are maximized. Moreover, the way the government contemplates the unemployment benefit system, either as a redistributive or as an insurance institution, is crucial for the dynamics and the equilibria of the economy.
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Bibliographic InfoPaper provided by Universitat de les Illes Balears, Departament d'Economía Aplicada in its series DEA Working Papers with number 8.
Date of creation: Dec 2004
Date of revision:
unemployment benefit system; payroll tax; wage tax.;
Other versions of this item:
- Fernando Sanchez Losada & Daniel Cardona, 2005. "The Unemployment Benefit System: a Redistributive or an Insurance Institution?," Working Papers in Economics 129, Universitat de Barcelona. Espai de Recerca en Economia.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-08 (All new papers)
- NEP-IAS-2006-04-08 (Insurance Economics)
- NEP-LAB-2006-04-08 (Labour Economics)
- NEP-MAC-2006-04-08 (Macroeconomics)
- NEP-PBE-2006-04-08 (Public Economics)
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