TY  - RPRT
        AU  - Beissinger, Thomas
AU  - Buesse, Oliver
        TI  - Bismarck versus Beveridge: Which Unemployment Compensation System is More Prone to Labor Market Shocks?
        PY  - 2001/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 358
        UR  - https://www.iza.org/index.php/publications/dp358
        AB  - Based on a model with imperfectly competitive labor and product markets the real consequences of labor market shocks for economies with either an earnings-related or flat-rate unemployment compensation system are considered. A distinctive feature of the analysis is the comparison of both unemployment compensation systems in a two-country setting. It is demonstrated that the performance of a system with earnings-related or flat-rate unemployment benefits depends on whether the labor market shock is provoked in the home country or originates from abroad. We also point out how our results extend to two-tier unemployment compensation systems which differ with respect to the relative importance of earnings-related and flat-rate benefits.
        KW  - monopolistic competition
KW  - Earnings-related benefits
KW  - flat-rate benefits
KW  - unemployment
KW  - open economy
KW  - wage bargaining
        ER  -