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Next: Central UI, endogenous contribution Up: Regional unemployment insurance Previous: The bargain

Endogenous tax rate

In contrast to the wage-bargaining, the way UI is modelled depends on which parameter serves to equilibrate the budget of UI (tax rate or benefit rate), and on whether a central or a regional UI is considered. The complete models consist of the characteristic submodel, containing the conditions for a migration equilibrium and the condition of a balanced budget, and the submodels describing the wage bargain for each region, respectively. First, the case is considered where a central UI adjusts the tax rate to balance its budget.



Subsections

Helge Sanner: Regional Unemployment Insurance, Potsdam 2001