Please use this identifier to cite or link to this item:
Hansen, Claus Thustrup
Jacobsen, Hans Jørgen
Year of Publication: 
Series/Report no.: 
EPRU Working Paper Series 1997-07
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 utility of an unemployed, aggregate benefit expenditures, or aggregate utility of union members can reduce unemployment.
Document Type: 
Working Paper

Files in This Item:
285.08 kB

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