Skip to Main content Skip to Navigation
Journal articles

Drowned by numbers? Stabilization properties of an EU-wide unemployment insurance system

Abstract : The recent crisis has given rise to proposals for the creation of a European unemployment insurance system. We simulate an EU-wide mechanism under various scenarios, varying methods of financing (common or country-specific contribution rates) and triggers for pay-outs (all time or contingent clauses). We analyse the impact of the system using different measures of stabilization under different fiscal multipliers. A system operating during bad times (periods where the increase in unemployment is large) would reduce GDP growth variability but also growth correlation among member countries. Hence, there is a trade-off between stabilization and synchronization of national business cycles.
Complete list of metadatas

https://hal.archives-ouvertes.fr/hal-02506028
Contributor : Isabelle Celet <>
Submitted on : Thursday, March 12, 2020 - 8:55:50 AM
Last modification on : Friday, March 13, 2020 - 1:45:21 AM

Identifiers

Collections

Citation

Etienne Farvaque, Florence Huart. Drowned by numbers? Stabilization properties of an EU-wide unemployment insurance system. Applied Economics, Taylor & Francis (Routledge), 2018, 50 (38), pp.4153-4181. ⟨10.1080/00036846.2018.1441517⟩. ⟨hal-02506028⟩

Share

Metrics

Record views

34