Enfranchisement and the welfare state: Institutional design of unemployment compensation
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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Volume (Year): 37 (2008)
Issue (Month): 4 (August)
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"Unemployment Insurance in Theory and Practice,"
CEPR Discussion Papers
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