%0 Report
        %A Beissinger, Thomas
%A Buesse, Oliver
        %T Bismarck versus Beveridge: Which Unemployment Compensation System is More Prone to Labor Market Shocks?
        %D 2001
        %8 2001 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 358
        %U https://www.iza.org/publications/dp358
        %X 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.
        %K monopolistic competition
%K Earnings-related benefits
%K flat-rate benefits
%K unemployment
%K open economy
%K wage bargaining