An Introduction to the European Union Unemployment Reinsurance System as Automatic Economic Stabilizer: Economic Policy and Management Recommendations
An Introduction to the European Union Unemployment Reinsurance System as Automatic Economic Stabilizer: Economic Policy and Management Recommendations

Summary/Abstract: This study examines stabilizing power and efficiency of presented unemployment reinsurance systems (URS EU). We find that the statutory contribution rate for unemployment insurance is sufficiently high only in a small part of the EU. Only certain insurance systems are sustainable. This paper demonstrates that the need for an automatic stabilizer, such as the reinsurance in the case of unemployment, has shown even more necessary. Through this paper and these recommendations, this study hopes to encourage institutional reforms, especially in the euro area, as the monetary union reduces macroeconomic stabilization policies at national level. We believe that the URS EU would represent a possible solution to the problems outlined in the paper.

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