In a union of states with partial mobility of households and firms we analyze the setting of minimum wages against the background of unemployment insurance. We find that unemployment insurance is always efficiently organized by decentral decisions. In contrast, for symmetric states only the...

The paper investigates the impacts of demographic change on the financial sustainability of a pay-as-you-go social security system in an economy with unemployment caused by trade unions. Using a simple two-period overlapping generations approach, it can be shown that the trade union behavior...

This paper investigates how demographic change affects the financial sustainability of a defined benefit pay-as-you-go social security system in an environment with collective bargaining on the labor market. Temporary equilibrium analysis shows that the contribution rate decreases, if the...

This paper compares the decentral organization of unemployment insurance in member states of a state union with the central organization at the upper union’ level. In a model of two countries the labor force and the firm owners can migrate between the states. Labor markets exhibit unemployment...

Our study compares the efficiency of unemployment insurance programs in a state union. A centralized insurance pools the cost of unemployment which implies a collective bargaining in the countries that leads to excessively high wages and inefficient insurance. Those high wages attract workers...

The paper shows the effect of demographic change on per capita burden of financing a PAYG social security system in the standard OLG model with frictional labor markets. Rising longevity and decreasing fertility both induce a rise in the employment level via increased capital accumulation and...

This paper investigates how demographic change affects the financial sustainability of a pay-as-you-go social security system in an environment with collective bargaining on the labor market. Partial equilibrium analysis shows that the contribution rate or the benefit level decreases, if the...

In a union of states with partial mobility of households and firms we analyze the setting of minimum wages against the background of unemployment insurance. We find that unemployment insurance is always efficiently organized by decentral decisions. In contrast, for symmetric states only the...

Our study compares the efficiency of unemployment insurance programs in a state union. A centralized insurance pools the cost of unemployment which implies a collective bargaining in the countries that leads to excessively high wages and inefficient insurance. Those high wages attract workers...

This paper compares the decentral organization of unemployment insurance in member states of a state union with the central organization at the upper union' level. In a model of two countries the labor force and the firm owners can migrate between the states. Labor markets exhibit unemployment...