Arbeitspapier
Buffer funding of unemployment insurance in a dynamic labour union model
In this paper we study the implications of the unemployment insurance (UI) financing system on wage levels and employment when labour markets are unionised and the revenues of the firms are stochastic.We use the basic monopoly union approach of wage and employment determination and assume that unemployment benefits are financed by employees UI contributions to the union s UI fund and by the government s tax revenue.The main focus of this paper is on the effects of UI buffer funding on employment fluctuations.We show that, compared with the pay-as-you-go financing system, buffer funding stabilises the economy by decreasing employment fluctuations where wages are flexible.If wages are rigid, buffer funding stabilises net wage variations, but has hardly any effect on employment fluctuations.
- ISBN
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952-462-084-7
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Finland Discussion Papers ; No. 24/2003
- Classification
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Wirtschaft
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Trade Unions: Objectives, Structure, and Effects
Unemployment Insurance; Severance Pay; Plant Closings
- Subject
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unemployment insurance
unions
stabilisation
buffer funding
- Event
-
Geistige Schöpfung
- (who)
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Halko, Marja-Liisa
- Event
-
Veröffentlichung
- (who)
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Bank of Finland
- (where)
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Helsinki
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Halko, Marja-Liisa
- Bank of Finland
Time of origin
- 2003
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