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Employment Turnover and Unemployment Insurance

John Hassler () and J-V Rodriguez Mora

Working Papers from Stockholm - International Economic Studies

Abstract: Two features distinguish European and US labor markets. First, most European countries have substantially more generous unemployment insurance. Second, the duration of unemployment and employment spells are substantially higher in Europe - employment turnover is lower. We show that self-insurance, i.e. saving and borrowing, is a good substitute for unemployment insurance when turnover is high as in US.

Keywords: EMPLOYMENT; UNEMPLOYMENT; UNEMPLOYMENT INSURANCE (search for similar items in EconPapers)
JEL-codes: J23 J64 J65 (search for similar items in EconPapers)
Pages: 36 pages
Date: 1997
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