December 2008

IZA DP No. 3869: Unemployment Insurance Generosity: A Trans-Atlantic Comparison

published in: Annales d'Economie et de Statistique, 2009, 95-96, 15-23

The goal of this paper is to establish if unemployment insurance policies are more generous in Europe than in the United States, and by how much. We take the examples of France and one particular American state, Ohio, and use the methodology of Pallage, Scruggs and Zimmermann (2008) to find a unique parameter value for each region that fully characterizes the generosity of the system. These two values can then be used in structural models that compare the regions, for example to explain the differences in unemployment rates.