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The Impact of the Unemployment Benefit System on International Spillover Effects

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  • Beissinger, Thomas
  • Büsse, Oliver

Abstract

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.

Suggested Citation

  • Beissinger, Thomas & Büsse, Oliver, 2002. "The Impact of the Unemployment Benefit System on International Spillover Effects," University of Regensburg Working Papers in Business, Economics and Management Information Systems 376, University of Regensburg, Department of Economics.
    • Handle: RePEc:bay:rdwiwi:119
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    Cited by:

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    2. Sebastian Weber, 2006. "Labor Market Structures, Trade and their Effect on Unemployment: A Theoretical Analysis and Empirical Investigation," IHEID Working Papers 22-2006, Economics Section, The Graduate Institute of International Studies.

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    More about this item

    Keywords

    Arbeitslosenunterstützung ; Arbeitslosigkeit ; Reallohn ; Offene Volkswirtschaft ; Lohnbildung; ; benefit system ; unemployment ; real wages ; open economy ; wage bargaining;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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