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... …

and on specific socio-economic groups in those markets also variedgreatly. Institutional arrangements such as employment … protection, unemployment insurancebenefits and minimum income support, working time flexibility and wage setting played acrucial … role in determining to what extent the economic crisis led to higher unemployment,wage cuts or income losses and rising …