Next: Introduction
Regional unemployment insurance
Helge Sanner
University of Potsdam
February 19, 2001
Abstract:
This study examines the effects of regionalising the budget of unemployment
insurance (UI) on wages, employment, and on UI parameters, which, for their
part, determine the agents´ preferences concerning such a reform. A
numerical example shows that, under reasonable assumptions, the intuition
that the reform would enhance efficiency and improve the economic situation
of agents from the low-unemployment region to the disadvantage of agents
from the high-unemployment region is not valid in general.
Keywords: Unemployment insurance; Wage bargaining; Migration
JEL classification: J65; C78; H72
Address of the author:
University of Potsdam, Department of Economics and Social Science, Postfach
900327, D-14439 Potsdam. Tel: +49 331 977-4636, Fax: +49 331 977-4615
e-mail: sanner@rz.uni-potsdam.de
Helge Sanner: Regional Unemployment Insurance, Potsdam 2001