Duration Dependent Unemployment Benefits in Trade Union Theory

Claus Thustrup Hansen and Hans Jørgen Jacobsen
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Claus Thustrup Hansen: University of Copenhagen Institute of Economics
Hans Jørgen Jacobsen: University of Copenhagen Institute of Economics
Authors registered in the RePEc Author Service: Claus Thustrup Kreiner

No 98-08, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: 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 income of an unemployed, aggregate benefit expenditures, or expected income of a union member can reduce unemployment.

Keywords: unemployment benefits; trade unions; unemployment (search for similar items in EconPapers)
JEL-codes: J32 J51 (search for similar items in EconPapers)
Pages: 26 pages + tables
Date: 1998-06
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Citations: View citations in EconPapers (2)

Published in: European Economic Review 46(7) 2002, 1229-1251

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