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The Impact of the Unemployment Benefit System on International Spillover Effects


Thomas Beissinger


University of Hohenheim; Institute for the Study of Labor (IZA)

Oliver Büsse


Universität Regensburg
November 2002

IZA Discussion Paper No. 656

Abstract:     
Based on a two-country model it is scrutinized how the structure of the unemployment benefit system affects the consequences of idiosyncratic labor market shocks on real wages and unemployment in other countries. International spillover effects are caused by changes in world real income. The paper provides new insights on how changes in world real income affect labor demand and the wage bargaining process. The analysis of the interaction of shock spillovers and benefit system focuses on two-tier as well as pure earnings-related and flat-rate benefit systems.

Number of Pages in PDF File: 34

Keywords: Benefit System, Unemployment, Real Wages, Open Economy, Wage Bargaining

JEL Classification: E24, F41, J23, J51, J65

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Date posted: January 30, 2003  

Suggested Citation

Beissinger, Thomas and Büsse, Oliver, The Impact of the Unemployment Benefit System on International Spillover Effects (November 2002). IZA Discussion Paper No. 656. Available at SSRN: http://ssrn.com/abstract=372462

Contact Information

Thomas Beissinger (Contact Author)
University of Hohenheim ( email )
Schloss Museumsflügel
Stuttgart, 70593
Germany
HOME PAGE: http://labour.uni-hohenheim.de/
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Oliver Büsse
Universität Regensburg ( email )
D-93040 Regensburg
Germany
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