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The Impact of the Unemployment Benefit System on International Spillover Effects

  • Beissinger, Thomas
  • Büsse, Oliver

Based on a two-country model it is scrutinized how the structure of the unemployment benefit system affects the consequences of idiosyncratic labor market shocks on real wages and unemployment in other countries. International spillover effects are caused by changes in world real income. The paper provides new insights on how changes in world real income affect labor demand and the wage bargaining process. The analysis of the interaction of shock spillovers and benefit system focuses on two-tier as well as pure earnings-related and flat-rate benefit systems. Im Rahmen eines Zweiländermodells wird untersucht, wie die Auswirkungen idiosynkratischer Arbeitsmarkschocks auf Reallöhne und Beschäftigung in anderen Ländern vom System der Arbeitslosenunterstützung beeinflusst werden. Es werden Systeme mit ausschließlich lohnabhängiger oder pauschaler Arbeitslosenunterstützung sowie zweistufige Systeme betrachtet. Der Übertragungsmechanismus länderspezifischer Arbeitsmarktschocks beruht auf der mit den Schocks einhergehenden Veränderung des realen Welteinkommens. Die vorliegende Arbeit macht deutlich, in welcher Weise Arbeitsnachfrage und Lohnsetzungsprozess von Änderungen des realen Welteinkommens berührt werden.

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File URL: http://epub.uni-regensburg.de/4485/1/beissinger.pdf
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Paper provided by University of Regensburg, Department of Economics in its series University of Regensburg Working Papers in Business, Economics and Management Information Systems with number 376.

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Date of creation: 2002
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Handle: RePEc:bay:rdwiwi:119
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  1. John M. Abowd & Thomas Lemieux, 1991. "The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada," NBER Working Papers 3808, National Bureau of Economic Research, Inc.
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  3. Beissinger, Thomas & Buesse, Oliver, 2001. "Bismarck versus Beveridge: Which Unemployment Compensation System is More Prone to Labor Market Shocks?," IZA Discussion Papers 358, Institute for the Study of Labor (IZA).
  4. Layard, R. & Nickell, S., 1988. "Is Unemployment Lower If Unions Bargain Over Employment?," Papers 308, London School of Economics - Centre for Labour Economics.
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  7. Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers 23, Centre for Economic Performance & Institute of Economics.
  8. Alan Manning, 1992. "Wage Bargaining and the Phillips Curve: The Identification and Specification of Aggregate Wage Equations," CEP Discussion Papers dp0062, Centre for Economic Performance, LSE.
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  12. Burkhard Heer & Albrecht Morgenstern, 2005. "The Labor Market Effects of Indexing Unemployment Benefits to Previous Earnings," Public Finance Review, , vol. 33(3), pages 385-402, May.
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  15. Pissarides, Christopher A., 1998. "The impact of employment tax cuts on unemployment and wages; The role of unemployment benefits and tax structure," European Economic Review, Elsevier, vol. 42(1), pages 155-183, January.
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  17. Manning, Alan, 1998. " Comment on B. Holmlund, "Unemployment Insurance in Theory and Practice."," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 143-45, March.
  18. Beissinger, Thomas & Egger, Hartmut, 2001. "Dynamic Wage Bargaining if Benefits are Tied to Individual Wages," IZA Discussion Papers 389, Institute for the Study of Labor (IZA).
  19. 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.
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  23. Goerke, Laszlo, 1998. "Bismarck versus Beveridge: Flat- and earnings-related unemployment insurance in an efficiency wage framework," Discussion Papers, Series I 291, University of Konstanz, Department of Economics.
  24. Amitava Dutt & Anindya Sen, 1997. "Union bargaining power, employment, and output in a model of monopolistic competition with wage bargaining," Journal of Economics, Springer, vol. 65(1), pages 1-17, February.
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