Unemployment insurance: The role of electoral systems and regional labour markets |
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Authors: | Michael Neugart |
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Affiliation: | Wissenschaftszentrum Berlin für Sozialforschung (WZB), Reichpietschufer 50, 10785 Berlin, Germany |
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Abstract: | Levels of insurance against unemployment vary considerably across countries. Replacement rates, the ratio relating income from unemployment to what people earned when they were employed, are higher in countries with proportional electoral systems than in countries with majoritarian systems. Also, replacement rates are positively correlated with per capita income and negatively correlated with the countries' unemployment rates. I develop an electoral competition model that replicates these stylized facts. |
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Keywords: | Unemployment insurance Electoral system Electoral competition Regional labour markets |
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