Voluntary Public Unemployment Insurance
Voluntary public unemployment systems are limited to a handful of countries, including Finland, Sweden, and, more substantially, Denmark. A voluntary system has the positive feature of other user-cost schemes, potentially efficient targeting of services. This presumes rational behavior as well as reasonable risk rating of premiums and the absence of worker access to alternative social programs. Using a 10 per cent sample of the Danish population drawn from administrative data, we exploit the voluntary Danish system to explore the structure of unemployment insurance demand. The insurance take-up rate is surprisingly high, 80 percent in 1995, but varies systematically with economic incentives in a way that raises doubts about the targeting value of the current system. Political support for the Danish system may derive instead from the fact that a universal, compulsory system would generate rather modest additional net funds and with a twist - additional revenue would come disproportionately from low-wage workers.
Year of publication: |
2003
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Authors: | Parsons, Donald O. ; Tranaes, Torben ; Lilleør, Helene Bie |
Publisher: |
Munich : Center for Economic Studies and ifo Institute (CESifo) |
Saved in:
freely available
Series: | CESifo Working Paper ; 1010 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 863993168 [GVK] hdl:10419/76595 [Handle] RePec:ces:ceswps:_1010 [RePEc] |
Source: |
Persistent link: https://www.econbiz.de/10010326745
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