Unemployment Insurance and Inequality

Birthe Larsen, Gisela Waisman

Publikation: Bidrag til konferencePaperForskning

Resumé

This paper examines the impact of higher unemployment insurance on the fraction of the work force paying into an unemployment insurance fond, wage differences and therefore inquality and education letting worker initial wealth being important for the decisions and implied values. As usually higher educated workers receive a lower fraction of their wages as unemployment insurance, we consider how the impact on labour market performance and wage differences and thereby inequality differ dependent on whether educated or uneducated workers receive higher benefits. The model can help shed light on the the puzzle why only some workers, for given educational level, pay into an unemployment insurance fond, the lower wealth mobility than income mobility as well as the relative compressed wage structure in countries with generous social assistance as well as unemployment insurance for low income workers, in particular. This also seen in a context where increased immigration into some countries may provide a relative higher fraction of the labour force with little initial wealth.
This paper examines the impact of higher unemployment insurance on the fraction of the work force paying into an unemployment insurance fond, wage differences and therefore inquality and education letting worker initial wealth being important for the decisions and implied values. As usually higher educated workers receive a lower fraction of their wages as unemployment insurance, we consider how the impact on labour market performance and wage differences and thereby inequality differ dependent on whether educated or uneducated workers receive higher benefits. The model can help shed light on the the puzzle why only some workers, for given educational level, pay into an unemployment insurance fond, the lower wealth mobility than income mobility as well as the relative compressed wage structure in countries with generous social assistance as well as unemployment insurance for low income workers, in particular. This also seen in a context where increased immigration into some countries may provide a relative higher fraction of the labour force with little initial wealth.

Workshop

Workshop7th European Search and Matching Network. SaM 2017
Nummer7
LokationBarcelona GSE
LandSpanien
ByBarcelona
Periode31/05/201702/06/2017
Internetadresse

Citer dette

Larsen, B., & Waisman, G. (2017). Unemployment Insurance and Inequality. Afhandling præsenteret på 7th European Search and Matching Network. SaM 2017, Barcelona, Spanien.
Larsen, Birthe ; Waisman, Gisela. / Unemployment Insurance and Inequality. Afhandling præsenteret på 7th European Search and Matching Network. SaM 2017, Barcelona, Spanien.16 s.
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Larsen, B & Waisman, G 2017, 'Unemployment Insurance and Inequality' Paper fremlagt ved 7th European Search and Matching Network. SaM 2017, Barcelona, Spanien, 31/05/2017 - 02/06/2017, .

Unemployment Insurance and Inequality. / Larsen, Birthe; Waisman, Gisela.

2017. Afhandling præsenteret på 7th European Search and Matching Network. SaM 2017, Barcelona, Spanien.

Publikation: Bidrag til konferencePaperForskning

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AU - Waisman,Gisela

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Larsen B, Waisman G. Unemployment Insurance and Inequality. 2017. Afhandling præsenteret på 7th European Search and Matching Network. SaM 2017, Barcelona, Spanien.