The Impact of the Unemployment Benefit System on International Spillover Effects

Thomas Beissinger () and Oliver Buesse
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Oliver Buesse: University of Regensburg

No 656, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Based on a two-country model it is scrutinized how the structure of the unemployment benefit system affects the consequences of idiosyncratic labor market shocks on real wages and unemployment in other countries. International spillover effects are caused by changes in world real income. The paper provides new insights on how changes in world real income affect labor demand and the wage bargaining process. The analysis of the interaction of shock spillovers and benefit system focuses on two-tier as well as pure earnings-related and flat-rate benefit systems.

Keywords: benefit system; unemployment; real wages; open economy; wage bargaining (search for similar items in EconPapers)
JEL-codes: E24 F41 J23 J51 J65 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2002-11
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (4)

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Working Paper: The Impact of the Unemployment Benefit System on International Spillover Effects (2002)
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