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On the design of a European unemployment insurance system

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dc.contributor.author Ábrahám, Árpád
dc.contributor.author Brogueira de Sousa, João
dc.contributor.author Marimon, Ramon
dc.contributor.author Mayr, Lukas
dc.date.accessioned 2023-06-30T06:47:43Z
dc.date.available 2023-06-30T06:47:43Z
dc.date.issued 2023
dc.identifier.citation Ábrahám Á, Brogueira de Sousa J, Marimon R, Mayr L. On the design of a European unemployment insurance system. Eur Econ Rev. 2023;156:104469. DOI: 10.1016/j.euroecorev.2023.104469
dc.identifier.issn 0014-2921
dc.identifier.uri http://hdl.handle.net/10230/57422
dc.description.abstract We study the welfare effects of both existing and counter-factual European unemployment insurance (UI) policies using a rich multi-country dynamic general equilibrium model with labour market frictions. The model successfully replicates several salient features of European labour markets, in particular the cross-country differences in the flows between employment, unemployment and inactivity, as a result of labour market and UI policy differences across euro area countries. We find that mechanisms like the recently introduced instrument for temporary support to mitigate unemployment risks in an emergency (SURE), which allows national governments to borrow at low interest rates to cover expenditures on unemployment risk, yield sizeable welfare gains. Furthermore, we find that, in spite of the calibrated heterogeneity across euro area countries, there is a common direction in which they can improve their UI policies; in particular, a harmonized benefit system that features a one-time payment of around three quarters of income upon separation is welfare improving in all euro area countries relative to the status quo.
dc.description.sponsorship Most of the research leading to this paper has been conducted within the Horizon 2020 ADEMU project, ‘‘A Dynamic Economic and Monetary Union’’, funded by the European Union’s Horizon 2020 Program under grant agreement No 649396. BSE is supported by the Severo Ochoa Programme for Centres of Excellence in R&D (CEX2019-000915-S). João Brogueira de Sousa gratefully acknowledges funding from Fundação para a Ciência e a Tecnologia, Portugal (UIDB/00124/2020, UIDP/00124/2020 and Social Sciences DataLab - PINFRA/22209/2016), POR Lisboa and POR Norte (Social Sciences DataLab, PINFRA/22209/2016).
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.relation.ispartof European Economic Review. 2023;156:104469.
dc.rights © 2023 The Author(s). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.title On the design of a European unemployment insurance system
dc.type info:eu-repo/semantics/article
dc.identifier.doi http://dx.doi.org/10.1016/j.euroecorev.2023.104469
dc.subject.keyword Labour markets
dc.subject.keyword Unemployment insurance
dc.subject.keyword Job creation
dc.subject.keyword Job destruction
dc.subject.keyword Risk-sharing
dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/649396
dc.relation.projectID info:eu-repo/grantAgreement/ES/2PE/CEX2019-000915-S
dc.rights.accessRights info:eu-repo/semantics/openAccess
dc.type.version info:eu-repo/semantics/publishedVersion

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