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Unemployment Compensation Preferences: Insurance and Solidarity

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Institutional and Financial Incentives for Social Insurance

Abstract

The massive growth of unemployment in Europe since the 1970s has put strong pressure on the existing systems of unemployment insurance (hereafter, U.I.). Economists have emphasized that the wage cost increase as a consequence of the social contributions is one of the main causes of unemployment and that the system therefore is caught in a vicious circle: larger unemployment leading to larger social contributions leading to larger unemployment. The most prominent policy reports of influential international institutions (the OECD Jobs Study and the White Book of the European Commission) have argued for a decrease of the unemployment benefits and for better targeting towards the really needy. This would basically reflect a tendency towards more explicit solidarity and less social insurance. More philosophically inclined authors have also described the need for a new culture of solidarity (Rosanvallon, 1995, Van Parijs, 1996).

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© 2002 Springer Science+Business Media New York

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Schokkaert, E., Verhue, M., Omey, E. (2002). Unemployment Compensation Preferences: Insurance and Solidarity. In: D’Aspremont, C., Ginsburgh, V., Sneessens, H., Spinnewyn, F. (eds) Institutional and Financial Incentives for Social Insurance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0783-3_4

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  • DOI: https://doi.org/10.1007/978-1-4615-0783-3_4

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-5237-2

  • Online ISBN: 978-1-4615-0783-3

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