Halko, Marja-Liisa - EconWPA - 2004
to the union’s UI fund and by the government’s tax revenue. The main focus of this paper is on the effects of UI buffer … funding on employment fluctuations. We show that, compared with the pay- as-you-go financing system, buffer funding stabilises … the economy by decreasing employment fluctuations where wages are flexible. If wages are rigid, buffer funding stabilises …