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Unemployment and Other Non-employment Benefits

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  • Blondal, Sveinbjorn
  • Pearson, Mark

Abstract

Unemployment benefit systems in most OECD countries have become more generous since the early 1960s: the coverage rate has increased, the level of benefits has increased relative to the predisplacement wages, and maximum benefit periods in unemployment-insurance systems have become longer. Moreover, work-availability and willingness-to-work requirements have most likely been enforced less effectively in the high-unemployment environment since the late 1970s. The changes in benefit systems have contributed to higher unemployment, but may also have increased labor-force participation. The article stresses the potential importance of invalidity, early-retirement and sickness benefit systems for labour market outcomes. In half of OECD countries the number of recipients of these benefits exceeds the official numbers of unemployed. Higher replacement ratios in these alternative systems than in unemployment insurance may encourage a migration towards the higher benefit systems, but the extent to which this happens depends on administration of the schemes. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Blondal, Sveinbjorn & Pearson, Mark, 1995. "Unemployment and Other Non-employment Benefits," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 136-169, Spring.
  • Handle: RePEc:oup:oxford:v:11:y:1995:i:1:p:136-69
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    References listed on IDEAS

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    Cited by:

    1. David Armstrong, 1999. "Hidden Male Unemployment in Northern Ireland," Regional Studies, Taylor & Francis Journals, vol. 33(6), pages 499-511.
    2. Venke Furre Haaland, 2016. "The lost generation: Effects of youth labor market opportunities on long-term labor market outcomes," Discussion Papers 835, Statistics Norway, Research Department.
    3. Robert Buchele & Jens Christiansen, 1999. "Employment and Productivity Growth in Europe and North America: The Impact of Labor Market Institutions," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(3), pages 313-332.
    4. Steve Nickell & Jan van Ours, 2000. "The Netherlands and the United Kingdom: a European unemployment miracle?," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 135-180, April.
    5. David R. Howell & Margaret Duncan & Bennett Harrison, 1998. "Low Wages in the US and High Unemployment in Europe: A Critical Assessment of the Conventional Wisdom," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 1998-01, Schwartz Center for Economic Policy Analysis (SCEPA), The New School, revised Aug 1998.
    6. David Kucera, 1998. "Unemployment and External and Internal Labor Market Flexibility: A Comparative View of Europe, Japan, and the United States," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 1998-21, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    7. Koskela, Erkki & Schob, Ronnie, 1999. "Alleviating unemployment:: The case for green tax reforms," European Economic Review, Elsevier, vol. 43(9), pages 1723-1746, October.
    8. Haaland, Venke Furre, 2013. "The Lost Generation: Effects of Youth Labor Market Opportunities on Long-Term Labor Market Outcomes," UiS Working Papers in Economics and Finance 2013/8, University of Stavanger.
    9. Andrew Glyn & Wiemer Salverda, 1999. "Employment Inequalities," Economics Working Paper Archive wp_293, Levy Economics Institute.
    10. Mares, Isabela, 1996. "Firms and the welfare state: the emergence of new forms of unemployment," Discussion Papers, Research Unit: Economic Change and Employment FS I 96-308, Social Science Research Center Berlin (WZB).
    11. David R. Howell & Miriam Rehm, 2009. "Unemployment compensation and high European unemployment: a reassessment with new benefit indicators," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 60-93, Spring.
    12. Walsh, Frank, 1999. "A Multisector Model of Efficiency Wages," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 351-376, April.
    13. A. E. Green, 1999. "Insights into unemployment and non-employment in Europe using alternative measures," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 453-464.
    14. John Sutherland, 1999. "Further reflections on hidden unemployment: An examination of the off-flows from the claimant count in the North West of England," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 465-476.
    15. Bruno Chiarini & Massimo Giannini, 2000. "A Model Of Union Behaviour And Benefits Under Uncertainty - Did Thatcher'S Benefits Policy Increase Employment And Reduce Union Power?," Working Papers 5_2000, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    16. repec:eee:labchp:v:3:y:1999:i:pc:p:3417-3528 is not listed on IDEAS
    17. Steven Pressman, 2003. "The Feminist Explanations for the Feminization of Poverty," LIS Working papers 351, LIS Cross-National Data Center in Luxembourg.
    18. Pavoni, Nicola, 2007. "On optimal unemployment compensation," Journal of Monetary Economics, Elsevier, vol. 54(6), pages 1612-1630, September.
    19. Christina Beatty & Stephen Fothergill & Rob Macmillan, 2000. "A Theory of Employment, Unemployment and Sickness," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 617-630, October.

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