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| Author: | Thurstrup Kreiner, C. Whitta-Jacobsen, H.J. |
| Title: | Duration dependent unemployment benefits in trade union theory |
| Journal: | European Economic Review
2002 : AUG, VOL. 46:7, p. 1229-1251 |
| Index terms: | TRADE UNIONS UNEMPLOYMENT |
| Language: | eng |
| Abstract: | The basic trade union model is generalized to allow for an unemployment benefit system consisting of two benefit levels, one for short-term and one for long-term unemployed, and a rule determining whether an unemployed is short- or long-term. Under relatively mild conditions the authors show that benefit systems with no or positive duration dependence are dominated by a system with negative duration dependence in the sense that all union members achieve higher utility, unemployment is lower, and benefit expenditures are smaller. |
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