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The Political Economy of Labour Market Institutions$
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Gilles Saint-Paul

Print publication date: 2000

Print ISBN-13: 9780198293323

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198293321.001.0001

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Unemployment Benefits and Other Measures for the Unemployed

Unemployment Benefits and Other Measures for the Unemployed

(p.143) 5 Unemployment Benefits and Other Measures for the Unemployed
The Political Economy of Labour Market Institutions

Gilles Saint‐Paul

Oxford University Press

This chapter analyses the political support for unemployment benefits. The traditional view, which focuses on their insurance value, is reformulated. We qualify it by introducing positive effects of unemployment benefits on wages, which may overturn the traditional predictions. For example, an increase in exposure to unemployment may reduce the support for employment protection, rather than increase it, as is predicted when insurance effects dominate. The chapter also discusses the determinants of active labour market policies.

Keywords:   active labour market policy, insurance effects, long‐term unemployed, short‐term unemployed, unemployment benefits, wage effects

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