IDEAS home Printed from https://ideas.repec.org/a/spr/izaels/v5y2016i1d10.1186_s40174-016-0060-7.html
   My bibliography  Save this article

Towards shared unemployment insurance in the euro area

Author

Listed:
  • László Andor

    (IMK, Hans Böckler Stiftung
    ULB)

Abstract

The divergences developed within the euro area represent the main threat to the existence of the single currency and to the stability of the EU as a whole. Without proper automatic stabilisers, a monetary union can only deliver suboptimal results and may not even be sustainable. In the recent years, common unemployment insurance has been examined as one of the possible ways to improve the functioning of the Economic and Monetary Union (EMU) through automatic stabilisation. Among various options, a partial pooling of unemployment benefit schemes stands out as the model with continuous impact and direct connection with the citizens, while the political process may favour less permanent features and more conditionality. There is a strong case for connecting the EMU reform with the EU social agenda and appreciating risk-sharing in Europe from a political as well as economic point of view. Jel codes: E24, E63, F45, H12, H53, J65

Suggested Citation

  • László Andor, 2016. "Towards shared unemployment insurance in the euro area," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-15, December.
    • Handle: RePEc:spr:izaels:v:5:y:2016:i:1:d:10.1186_s40174-016-0060-7
    DOI: 10.1186/s40174-016-0060-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40174-016-0060-7
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40174-016-0060-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Enrico Spolaore, 2013. "What Is European Integration Really About? A Political Guide for Economists," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 125-144, Summer.
    2. Xavier Jara Tamayo, Holguer & Tumino, Alberto & Sutherland, Holly, 2015. "The redistributive and stabilising effects of an EMU unemployment benefit scheme under different hypothetical unemployment scenarios," EUROMOD Working Papers EM18/15, EUROMOD at the Institute for Social and Economic Research.
    3. Robert M. Solow, 2005. "Rethinking Fiscal Policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(4), pages 509-514, Winter.
    4. Galina Hale & Maurice Obstfeld, 2016. "The Euro And The Geography Of International Debt Flows," Journal of the European Economic Association, European Economic Association, vol. 14(1), pages 115-144, February.
    5. Andrea Brandolini & Francesca Carta & Francesco D'Amuri, 2016. "A Feasible Unemployment-Based Shock Absorber for the Euro Area," Journal of Common Market Studies, Wiley Blackwell, vol. 54(5), pages 1123-1141, September.
    6. Philip Arestis & Elias Karakitsos, 2012. "The U.S. dimension of the euro zone debt crisis," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 35(1), pages 21-44.
    7. Barry Eichengreen, 1992. "Is Europe an Optimum Currency Area?," Palgrave Macmillan Books, in: Silvio Borner & Herbert Grubel (ed.), The European Community after 1992, chapter 8, pages 138-161, Palgrave Macmillan.
    8. Paolo Pasimeni, 2014. "An Optimum Currency Crisis," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(2), pages 173-204, December.
    9. Philip R. Lane, 2013. "Capital Flows in the Euro Area," European Economy - Economic Papers 2008 - 2015 497, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Bayoumi, Tamim & Masson, Paul R., 1995. "Fiscal flows in the United States and Canada: Lessons for monetary union in Europe," European Economic Review, Elsevier, vol. 39(2), pages 253-274, February.
    11. Olivier Blanchard & Francesco Giavazzi, 2002. "Current Account Deficits in the Euro Area: The End of the Feldstein Horioka Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(2), pages 147-210.
    12. Jean Pisani-Ferry & Erkki Vihriälä & Guntram B. Wolff, 2013. "Options for a Euro-area fiscal capacity," Policy Contributions 765, Bruegel.
    13. Sebastian Dullien & Ferdinand Fichtner, 2013. "A Common Unemployment Insurance System for the Euro Area," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 3(1), pages 9-14.
    14. Xavier Sala-i-Martin & Jeffrey Sachs, 1991. "Fiscal Federalism and Optimum Currency Areas: Evidence for Europe From the United States," NBER Working Papers 3855, National Bureau of Economic Research, Inc.
    15. Robert C. M. Beyer & Frank Smets, 2015. "Editor'S Choice Labour market adjustments and migration in Europe and the United States: how different?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(84), pages 643-682.
    16. Fleming, J Marcus, 1971. "On Exchange Rate Unification," Economic Journal, Royal Economic Society, vol. 81(323), pages 467-488, September.
    17. Alexander Italianer & Jean Pisani-Ferry, 1994. "The regional-stabilisation properties of fiscal arrangements," Palgrave Macmillan Books, in: Jørgen Mortensen (ed.), Improving Economic and Social Cohesion in the European Community, chapter 11, pages 155-194, Palgrave Macmillan.
    18. Dornbusch, Rudi, 1997. "Fiscal Aspects of Monetary Integration," American Economic Review, American Economic Association, vol. 87(2), pages 221-223, May.
    19. Obstfeld, Maurice, 2013. "Finance at Center Stage: Some Lessons of the Euro Crisis," CEPR Discussion Papers 9415, C.E.P.R. Discussion Papers.
    20. Rudi Dornbusch, 1998. "Debt and Monetary Policy: The Policy Issues," International Economic Association Series, in: Guillermo Calvo & Mervyn King (ed.), The Debt Burden and its Consequences for Monetary Policy, chapter 1, pages 3-27, Palgrave Macmillan.
    21. Smets, Frank & Beyer, Robert C. M., 2015. "Labour market adjustments in Europe and the US: How different?," Working Paper Series 1767, European Central Bank.
    22. Kevin H. O'Rourke & Alan M. Taylor, 2013. "Cross of Euros," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 167-192, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Léo Aparisi de Lannoy & Xavier Ragot, 2017. "Une (ré) assurance chômage européenne," SciencePo Working papers Main hal-03455381, HAL.
    2. Lenaerts, Karolien & Paquier, Félix & Simonetta, Suzanne, 2017. "Unemployment Insurance in America: A model for Europe?," CEPS Papers 12684, Centre for European Policy Studies.
    3. Schmid, Günther, 2020. "Beyond European unemployment insurance. Less moral hazard, more moral assurance?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(4), pages 465-480.
    4. Léo Aparisi de Lannoy & Xavier Ragot, 2017. "Une (ré) assurance chômage européenne," Sciences Po publications info:hdl:2441/69i5rbio799, Sciences Po.
    5. Xavier Jara Tamayo, Holguer & Simon, Agathe, 2021. "The income protection role of an EMU-wide unemployment insurance system: the case of atypical workers," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA6/21, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
    6. Sharon Baute & Bart Meuleman & Koen Abts & Marc Swyngedouw, 2018. "Measuring Attitudes Towards Social Europe: A Multidimensional Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 353-378, May.
    7. Jakob Kapeller & Claudius Graebner & Philipp Heimberger, 2019. "Economic Polarisation in Europe: Causes and Policy Options," ICAE Working Papers 99, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    8. Alexander Karaivanov & Benoit Mojon & Luiz Pereira da Silva & Albert Pierres Tejada & Robert Townsend, 2024. "Incentive-Compatible Unemployment Reinsurance for the Euro Area," NBER Working Papers 32396, National Bureau of Economic Research, Inc.
    9. Andreas Peichl & Mathias Dolls, 2019. "Auf dem Weg zur Sozialunion?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(10), pages 08-11, May.
    10. Francesco Saraceno, 2021. "The Return of Fiscal Policy: Eurozone Macroeconomic Governance after Covid," Annals of the Fondazione Luigi Einaudi. An Interdisciplinary Journal of Economics, History and Political Science, Fondazione Luigi Einaudi, Torino (Italy), vol. 55(2), pages 191-208, December.
    11. Cimadomo, Jacopo & Gordo Mora, Esther & Palazzo, Alessandra Anna, 2022. "Enhancing private and public risk sharing: lessons from the literature and reflections on the COVID-19 crisis," Occasional Paper Series 306, European Central Bank.
    12. Alcidi, Cinzia & Thirion, Gilles, 2017. "Fiscal Risk Sharing and Resilience to Shocks: Lessons for the euro area from the US," CEPS Papers 12595, Centre for European Policy Studies.
    13. Sharon Baute & Francesco Nicoli & Frank Vandenbroucke, 2022. "Conditional Generosity and Deservingness in Public Support for European Unemployment Risk Sharing," Journal of Common Market Studies, Wiley Blackwell, vol. 60(3), pages 721-740, May.
    14. repec:hal:spmain:info:hdl:2441/5i0jcpu6sk96cpn76n8q0ie20c is not listed on IDEAS
    15. Francesco Saraceno, 2021. "Europe After COVID-19: A New Role for German Leadership?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(2), pages 65-69, March.
    16. Günther Schmid, 2020. "Beyond European unemployment insurance. Less moral hazard, more moral assurance?," Transfer: European Review of Labour and Research, , vol. 26(4), pages 465-480, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paolo Pasimeni, 2014. "An Optimum Currency Crisis," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(2), pages 173-204, December.
    2. Lars Jonung & Eoin Drea, 2010. "It Can't Happen, It's a Bad Idea, It Won't Last: U.S. Economists on the EMU and the Euro, 1989–2002," Econ Journal Watch, Econ Journal Watch, vol. 7(1), pages 1-4–52, January.
    3. Ricci, Luca Antonio, 2008. "A Model of an Optimum Currency Area," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-31.
    4. Marius Clemens & Guillaume Claveres, 2017. "Unemployment Insurance Union," 2017 Meeting Papers 1340, Society for Economic Dynamics.
    5. Jacques Mélitz, 1995. "A suggested reformulation of the theory of optimal currency areas," Open Economies Review, Springer, vol. 6(3), pages 281-298, July.
    6. Giovannini, Alessandro & Ioannou, Demosthenes & Stracca, Livio, 2022. "Public and private risk sharing: friends or foes? The interplay between different forms of risk sharing," Occasional Paper Series 295, European Central Bank.
    7. Francesco Spadafora, 2019. "European integration in the time of mistrust," Questioni di Economia e Finanza (Occasional Papers) 512, Bank of Italy, Economic Research and International Relations Area.
    8. Jeroen Hessel, 2019. "Medium-term asymmetric fluctuations and EMU as an optimum currency area," DNB Working Papers 644, Netherlands Central Bank, Research Department.
    9. repec:zbw:bofrdp:1997_008 is not listed on IDEAS
    10. Frédéric Zumer, 1998. "Stabilisation et redistribution budgétaires entre régions : État centralisé, État fédéral," Revue de l'OFCE, Programme National Persée, vol. 65(1), pages 243-289.
    11. Fritz Breuss, 2013. "Towards a New EMU," WIFO Working Papers 447, WIFO.
    12. Kenneth M. Kletzer, "undated". "Macroeconomic Stabilization with a Common Currency:," EPRU Working Paper Series 97-22, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    13. Filippo Balestrieri & Mr. Suman S Basu, 2018. "An Imperfect Financial Union With Heterogeneous Regions," IMF Working Papers 2018/205, International Monetary Fund.
    14. Roberto Tamborini, 2017. "Europe at the Interdependence War," EconPol Working Paper 2, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    15. Philip R. Lane, 2013. "Growth And Adjustment Challenges For The Euro Area," The Economic and Social Review, Economic and Social Studies, vol. 44(2), pages 273-295.
    16. Jääskelä, Jarkko, 1997. "Incomplete insurance market and its policy implication within European Monetary Union," Research Discussion Papers 8/1997, Bank of Finland.
    17. repec:hal:spmain:info:hdl:2441/766 is not listed on IDEAS
    18. Mogaji, Peter Kehinde, 2015. "Review of Architectural Flaws of the EMU: What Eurozone Crisis Lessons for the Proposed ‘Afrozone’?," MPRA Paper 99334, University Library of Munich, Germany.
    19. Alban Mathieu, 2021. "Frankel and Rose’s Introduction to the Endogeneity of Optimality: A Model Limited to the European Monetary Experience," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 299-314, July.
    20. Paul R. Masson, 2020. "Lezioni dall'eurozona per l'Africa (Lessons for Africa from the Eurozone)," Moneta e Credito, Economia civile, vol. 73(289), pages 11-32.
    21. Jakob de Haan & Jeroen Hessel & Niels Gilbert, 2014. "Reforming the architecture of EMU: Ensuring stability in Europe," DNB Working Papers 446, Netherlands Central Bank, Research Department.
    22. Schor, Armand-Denis, 2000. "La théorie des zones monétaires optimales : l’optimum, le praticable, le crédible et le réel," L'Actualité Economique, Société Canadienne de Science Economique, vol. 76(4), pages 545-576, décembre.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:izaels:v:5:y:2016:i:1:d:10.1186_s40174-016-0060-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.