Search results for "unemployment insurance"
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Precarious workers' choices about unemployment insurance membership after the Ghent system reform : The Finnish experience
2019
The literature on the Ghent system has focused on the link between voluntary unemployment insurance and union membership in terms of industrial relations. Less attention has been paid to unemployment benefits and employees' decision-making concerning unemployment insurance, even though the core function of the Ghent system is to provide unemployment insurance. This paper examines both of the options that precarious workers (i.e., part-timers, temporary employees, and low-skilled service employees) choose regarding unemployment insurance membership and the change in union density after the Ghent system reform in Finland. First, the results show that the growth of the independent unemployment…
Financing Unemployment Benefits: Dismissal versus Employment Taxes
2006
This paper investigates the effects of using dismissal taxes to finance unemployment benefits. We compare dismissal and employment taxes in a model with search frictions. Employment taxes give rise to externalities because firms do not take into account the effects their dismissal decisions have on others. By introducing dismissal taxes to finance unemployment insurance, these externalities can partly be internalized. Taking into account the budget of the unemployment insurance, employment taxes can be reduced by more than necessary to offset the adverse effect of dismissal taxes on the firm value. The introduction of dismissal taxes leads to higher job creation and lower unemployment, in c…