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Duration Dependent Unemployment Benefits in Trade Union Theory

Author

Listed:
  • Claus Thustrup Hansen

    (University of Copenhagen Institute of Economics)

  • Hans Jørgen Jacobsen

    (University of Copenhagen Institute of Economics)

Abstract

The basic trade union model is extended to allow for a more sophisticated unemployment benefit system consisting of two benefit levels, one for short-term and one for long-term unemployed, and a rule determining whether an unemployed is short- or long-term. The purpose of this extension is twofold; to get a more realistic analysis of the actual benefit systems in most countries, and to analyse alternative reforms to the traditional one of changing a uniform benefit level. Reforms that rebalance the benefit rates holding constant either expected income of an unemployed, aggregate benefit expenditures, or expected income of a union member can reduce unemployment.

Suggested Citation

  • Claus Thustrup Hansen & Hans Jørgen Jacobsen, 1998. "Duration Dependent Unemployment Benefits in Trade Union Theory," Discussion Papers 98-08, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:9808
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    Cited by:

    1. Bruno Van Der Linden, 2003. "Unemployment Insurance and Training in an Equilibrium Matching Model with Heterogeneous Agents," Working Papers 2003-01, Center for Research in Economics and Statistics.
    2. repec:ebl:ecbull:v:10:y:2005:i:2:p:1-10 is not listed on IDEAS
    3. Kreiner, Claus Thustrup & Whitta-Jacobsen, Hans Jorgen, 2002. "Duration dependent unemployment benefits in trade union theory," European Economic Review, Elsevier, vol. 46(7), pages 1229-1251, July.
    4. König, Jan & Skupnik, Christoph, 2012. "Labor market integration of migrants: Hidden costs and benefits in two-tier welfare states," Discussion Papers 2012/5, Free University Berlin, School of Business & Economics.
    5. Goerke, Laszlo & Madsen, Jakob B., 2003. "Earnings-Related Unemployment Benefits in a Unionised Economy," IZA Discussion Papers 701, Institute of Labor Economics (IZA).
    6. Cahuc, Pierre & Lehmann, Etienne, 2000. "Should unemployment benefits decrease with the unemployment spell?," Journal of Public Economics, Elsevier, vol. 77(1), pages 135-153, July.
    7. Goerke, Laszlo & Madsen, Jakob B., 2003. "Earnings-related unemployment benefits and unemployment," Economic Systems, Elsevier, vol. 27(1), pages 41-62, March.

    More about this item

    Keywords

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    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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