Goerke, Laszlo; Pannenberg, Markus; Ursprung, Heinrich W. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
utility. We show for a wage bargaining model that a stronger earningsrelationship of unemployment benefits may reduce wages …Evidently, the benefit-structure of the unemployment insurance has a significant influence onprofits and trade union … and increase employment. Thisraises the question as to how the benefit structure is determined in the political process... …