Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21218
Authors: 
Beissinger, Thomas
Buesse, Oliver
Year of Publication: 
2001
Series/Report no.: 
IZA Discussion paper series 358
Abstract: 
Based on a model with imperfectly competitive labor and product markets the real consequences of labor market shocks for economies with either an earnings-related or flatrate unemployment compensation system are considered. A distinctive feature of the analysis is the comparison of both unemployment compensation systems in a two-country setting. It is demonstrated that the performance of a system with earnings-related or flat-rate unemployment benefits depends on whether the labor market shock is provoked in the home country or originates from abroad. We also point out how our results extend to two-tier unemployment compensation systems which differ with respect to the relative importance of earnings-related and flat-rate benefits.
Subjects: 
Earnings-related benefits
flat-rate benefits
unemployment
open economy
monopolistic competition
wage bargaining
JEL: 
E24
F41
J23
J51
J65
Document Type: 
Working Paper

Files in This Item:
File
Size
315.38 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.