Publikation: Monographie

Should unemployment insurance be centralized in a state union?

Grunddaten
Abstract
Autoren
Einrichtung

Grunddaten

Titel	Should unemployment insurance be centralized in a state union?
Erscheinungsjahr	2018
Verlag	Munich Society for the Promotion of Economic Research CESifo GmbH
Verlagsort	Munich, Germany
Serie	CESifo working paper ; no. 6898
Publikationsform	Elektronische Ressource
Publikationsart	Monographie
Sprache	Englisch
Letzte Änderung	16.05.2019 00:21:39
Bearbeitungsstatus	durch UB Rostock abschließend validiert
Dauerhafte URL	http://purl.uni-rostock.de/fodb/pub/57223
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Abstract

This paper compares the decentral organization of unemployment insurance in member states of a state union with the central organization at the upper union' level. In a model of two countries the labor force and the firm owners can migrate between the states. Labor markets exhibit unemployment due to trade union's bargaining about the wage rate. In a decentral scenario the states organize independently unemployment insurance and decide about the rate on wages contributed to the insurance budget. Due to open borders they have to take account of migration effects. However, with perfect mobility between the states each government chooses a socially optimal contribution rate such that workers are fully insured against unemployment. In the central scenario the governments overestimate the costs of insurance when bargaining about the contribution rate and observing the common insurance budget of both countries. This leads to a less than socially optimal contribution rate.

Autoren

Fenge, Robert
Friese, Max

Einrichtung

WSF/IfVWL/Finanzwissenschaft mit Schwerpunkt Demografischer Wandel