Unemployment Benefits and Other Measures for the Unemployed

Gilles Saint‐Paul

in The Political Economy of Labour Market Institutions

Published in print September 2000 | ISBN: 9780198293323
Published online November 2003 | e-ISBN: 9780191596841 | DOI:
 Unemployment Benefits and Other Measures for the Unemployed

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This chapter analyses the political support for unemployment benefits. The traditional view, which focuses on their insurance value, is reformulated. We qualify it by introducing positive effects of unemployment benefits on wages, which may overturn the traditional predictions. For example, an increase in exposure to unemployment may reduce the support for employment protection, rather than increase it, as is predicted when insurance effects dominate. The chapter also discusses the determinants of active labour market policies.

Keywords: active labour market policy; insurance effects; long‐term unemployed; short‐term unemployed; unemployment benefits; wage effects

Chapter.  8423 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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