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|
|Date of revision:|
|Publication status:||Published in: European Economic Review 46(7) 2002, 1229-1251|
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