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Enfranchisement and the welfare state: Institutional design of unemployment compensation

  • Kim, Wonik
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    This paper examines the relationship between various political mechanisms and the variation in unemployment compensation programs (i.e., compulsory, voluntary, and assistance programs). I argue that the choice of a specific unemployment compensation program over others depends on the level of franchise extension. Using a multinomial logit analysis of 13 European countries from 1880 to 1945, I find that among other political mechanisms, franchise extension had the greatest impact on the likelihood of instituting unemployment compensation, controlling socio-economic factors. Greater enfranchisement is associated with a higher probability of choosing a compulsory program, but not a voluntary one.

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    Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

    Volume (Year): 37 (2008)
    Issue (Month): 4 (August)
    Pages: 1660-1678

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    Handle: RePEc:eee:soceco:v:37:y:2008:i:4:p:1660-1678
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    1. repec:cup:cbooks:9780521529167 is not listed on IDEAS
    2. Holmlund, Bertil, 1997. "Unemployment Insurance in Theory and Practice," Working Paper Series 1997:25, Uppsala University, Department of Economics.
    3. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
    4. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005.
    5. Nordhaus, William D, 1975. "The Political Business Cycle," Review of Economic Studies, Wiley Blackwell, vol. 42(2), pages 169-90, April.
    6. repec:cup:cbooks:9780521821742 is not listed on IDEAS
    7. repec:cup:cbooks:9780521529174 is not listed on IDEAS
    8. repec:cup:cbooks:9780521821759 is not listed on IDEAS
    9. Deirdre N. McCloskey & Stephen T. Ziliak, 1996. "The Standard Error of Regressions," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 97-114, March.
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