Duration Dependent Unemployment Benefits in Trade Union Theory
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.
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|Length:||26 pages + tables|
|Date of creation:||Jun 1998|
|Publication status:||Published in: European Economic Review 46(7) 2002, 1229-1251|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
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Web page: http://www.econ.ku.dk
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"Optimal Unemployment Insurance in Search Equilibrium,"
Working Paper Series
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"Duration dependent unemployment benefits in trade union theory,"
European Economic Review,
Elsevier, vol. 46(7), pages 1229-1251, July.
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621, Princeton University, Department of Economics, Industrial Relations Section..
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- Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 160-193.
- Burdett, Kenneth, 1979. "Unemployment Insurance Payments as a Search Subsidy: A Theoretical Analysis," Economic Inquiry, Western Economic Association International, vol. 17(3), pages 333-343, July.
- 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.
- 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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