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Bargaining Structure and Regional Unemployment Insurance

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  • Helge Sanner

Abstract

This study examines how the size of trade unions relative to the labor force impacts on the desirability of different organizational forms of self- financing unemployment insurance (UI) for workers, firms, and with reference to an efficiency criterion. For this purpose, we respectively numerically compare the outcome of a model with a uniform payroll tax to a model where workers pay taxes according to their systematic risk of unemployment. Our results highlight the importance of the bargaining structure for the assessment of a particular UI scheme. Most importantly, it depends on the size of the unions whether effciency favors a uniform or a differentiated UI scheme.

Suggested Citation

  • Helge Sanner, 2001. "Bargaining Structure and Regional Unemployment Insurance," Volkswirtschaftliche Diskussionsbeiträge 44, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät, revised May 2002.
    • Handle: RePEc:pot:vwldis:44
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    References listed on IDEAS

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    Cited by:

    1. Norbert Eickhof & Kathrin Isele, 2005. "Do Economists Matter? Eine politökonomische Analyse des Einflusses wettbewerbspolitischer Leitbilder auf die europäische Fusionskontrolle," Volkswirtschaftliche Diskussionsbeiträge 74, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    2. Verena L. Holzer, 2004. "Does the German Renewable Energies Act fulfil Sustainable Development Objectives?," Volkswirtschaftliche Diskussionsbeiträge 73, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    3. Robert Fenge & Max Friese, 2018. "Should Unemployment Insurance be Centralized in a State Union?," CESifo Working Paper Series 6898, CESifo.
    4. Do Truong Giang, 2004. "Tariffs and export subsidies in a spatial economic model," Volkswirtschaftliche Diskussionsbeiträge 65, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    5. Wolfgang Wagner, 1999. "Vergleich von ringförmiger und sektoraler Stadtstruktur bei Nachbarschaftsexternalitäten im monozentrischen System," Volkswirtschaftliche Diskussionsbeiträge 32, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    6. Klaus Schöler, 2007. "Gibt es eine optimale Stadtgröße?," Volkswirtschaftliche Diskussionsbeiträge 89, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    7. Norbert Eickhof, 2003. "Globalisierung, institutioneller Wettbewerb und nationale Wirtschaftspolitik," Volkswirtschaftliche Diskussionsbeiträge 52, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.

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    More about this item

    Keywords

    Unemployment Insurance; Wage bargaining theory; Union size;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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