Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21250
Authors: 
Beissinger, Thomas
Year of Publication: 
2001
Series/Report no.: 
IZA Discussion paper series 390
Abstract: 
The paper contributes to the globalization debate by scrutinizing the international spillover effects which are provoked if a single country reduces the generosity of the unemployment compensation system or weakens labor union power. For this purpose a two-country model with imperfect competition in goods and labor markets and perfect competition in capital markets is developed. It is demonstrated that the comparative-static results depend on the degree of capital mobility, the degree of competition in the goods market and the institutional setup of the unemployment compensation system. Furthermore, it is shown that the impact of country-specific labor market reforms on households in other countries depends on whether the household's main income source consists of wage income or capital income and profits.
Subjects: 
Globalization
capital mobility
unemployment
unemployment compensation
wage bargaining
monopolistic competition
welfare state
JEL: 
E24
F21
J65
F41
J51
J23
Document Type: 
Working Paper

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