for economies with either an earnings-related or flatrate 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 …

employment levels during recessions. However, they can create inefficiency in the labor market, and might limit labor market …

welfare of workers but could reduce social welfare as well. Both unemployment benefits and severance payments can protect … unemployment. If the jobs performed by domestic workers can be easily substituted by imports, then globalization reduces wages and … increases unemployment. In this situation, in the absence of any government intervention globalization not only reduces the …

provoked if a single country reduces the generosity of the unemployment compensation system or weakens labor union power. For … degree of competition in the goods market and the institutional setup of the unemployment compensation system. Furthermore …