Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20837 
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion Papers No. 656
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
benefit system
unemployment
real wages
open economy
wage bargaining
JEL: 
E24
F41
J23
J51
J65
Document Type: 
Working Paper

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