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Social and Occupational Security and Labour Market Flexibility in Sweden: The Case of Unemployment Compensation

Author

Listed:
  • Lindquist, Gabriella Sjögren

    () (SOFI, Stockholm University)

  • Wadensjö, Eskil

    () (Stockholm University)

Abstract

The Swedish labour market and social policy is aimed at facilitating flexibility in the labour market. The active labour market policy and the design of the social security pension system are two frequently mentioned examples of that policy. This does not necessarily mean that all policy programs are in accordance with the goal of enhancing flexibility. In this paper we analyze one part of the social and occupational (collectively bargained) security system – the compensation at unemployment with special emphasis on the schemes complementing compensation from the unemployment insurance scheme. We focus on the effects of those systems on labour market flexibility. Some parts of these complementing systems support mobility and return to work after layoffs, other parts of the systems may lead to that workers avoid job mobility and to prolonged periods of unemployment. Of special interest is that those complementing systems differ between different sectors of the labour market and that many, especially young people, are not covered.

Suggested Citation

  • Lindquist, Gabriella Sjögren & Wadensjö, Eskil, 2007. "Social and Occupational Security and Labour Market Flexibility in Sweden: The Case of Unemployment Compensation," IZA Discussion Papers 2943, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp2943
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    Keywords

    unemployment; unemployment insurance; occupational insurance; severance pay;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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