Labour mobility and decision making on social insurance in an integrated market |
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Authors: | Arjan M. Lejour Harrie A. A. Verbon |
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Affiliation: | 1. Department of Economics, Tilburg University, P.O. Box 90153, 5000 LE, Tilburg
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Abstract: | In a two-country model the consequences of labour mobility on social insurance levels are studied. There are two groups of workers, one with a high risk and the other one with a low risk of being nonemployed. In both countries the decision-making function on social insurance is some weighted average of the expected utilities of both groups. In case low-risk workers are much more mobile than high-risk workers, it can be concluded that labour mobility does not necessarily have a downward effect on social insurance. In that case coordination of decision making would not improve the levels of social insurance. |
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