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Labour Mobility and Decision Making on Social Insurance in an Integrated Market

  • Lejour, Arjan M
  • Verbon, Harrie A A

In a two-country model, the consequences of labor mobility on social insurance levels are studied. There are two groups of workers, one with a high risk and the other one with a low risk of being nonemployed. In both countries, the decision-making function on social insurance is some weighted average of the expected utilities of both groups. In case low-risk workers are much more mobile than high-risk workers, it can be concluded that labor mobility does not necessarily have a downward effect on social insurance. In that case, coordination of decision-making would not improve levels of social insurance. Copyright 1994 by Kluwer Academic Publishers

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Article provided by Springer in its journal Public Choice.

Volume (Year): 79 (1994)
Issue (Month): 1-2 (April)
Pages: 161-85

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Handle: RePEc:kap:pubcho:v:79:y:1994:i:1-2:p:161-85
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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