Experience Rated Unemployment Insurance : was Europe Right Not to Choose It?
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2007
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Stähler, Nikolai
Baumann, Florian
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Theoretical economic literature dealing with the financing of unemployment insurance finds that experience rating helps to solve the externality caused by individual efficient but socially inefficient dismissals and, hence, reduces unemployment. This is, however, found in models where workers and firms bargain over wages individually. Introducing unionized wage bargaining - which at in least continental Europe is a defining feature of the economy - generally gives highly ambiguous results; even opposite results can be obtained showing that the introduction of experience rating increases unemployment.
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330 Wirtschaft
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experience rating, search and matching models, unemployment, unemployment insurance, unions
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STÄHLER, Nikolai, Florian BAUMANN, 2007. Experience Rated Unemployment Insurance : was Europe Right Not to Choose It?BibTex
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year={2007},
series={Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit},
title={Experience Rated Unemployment Insurance : was Europe Right Not to Choose It?},
number={07,13},
author={Stähler, Nikolai and Baumann, Florian}
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