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Drowned by Numbers? Designing an EU-wide Unemployment Insurance

Etienne Farvaque () and Florence Huart ()

CIRANO Working Papers from CIRANO

Abstract: The severity of the recent crisis has given rise to several proposals for the creation of a European unemployment insurance system. In this paper, we first explore the theoretical backgrounds of a common insurance system. We, then, analyze the main features of an EU-wide unemployment insurance, and explore its financial and political sustainability, under different scenarios, including a “US-equivalent” one. We finally highlight key issues with regard to implementation and potential undesirable effects.

Keywords: intergovernmental transfers; fiscal union; fiscal federalism; European integration; unemployment insurance, (search for similar items in EconPapers)
JEL-codes: F45 F36 H77 H87 E60 (search for similar items in EconPapers)
Date: 2016-06-22
New Economics Papers: this item is included in nep-ias, nep-mac and nep-pbe
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Handle: RePEc:cir:cirwor:2016s-33