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Assignment Questions

Is Unemployment Insurance an Efficient Social Policy?

Is Uemployment Insurance Efficient
In this paper you will evalute whether Unemployment Insurance is an efficient social policy. In your paper you should consider the following:
a. What is the purpose of unemployment insurance?
b. Does Uemployment Insurance achieve this goal?
c. Does unemployment insruance kill jobs?
In your answer you should consider the thress sources provided below and three articles about the subject that you will find on the internet:
the international comparison, the Washington Post article
Washington Post Article about unemployment Insurance
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/08/AR4927.html?sid=ST0022
Unemployment in Germany
http://www.tradingeconomics.com/germany/unemployment-rate
Social policies and data, Benefits and Wages 2007, OECD
http://www.oecd.org/social/soc/benefitsandwages2007.htm
Table 1.1 Unemployment insurance benefits, 2005
For a 40-year-old single worker without children, with a 22-year employment record1

“Employment (E) and
contribution (C)
conditions” “Insurance is
voluntary (V) or
compulsory (C)
for employees” “Waiting period
(days)” “Maximum
duration
(months)” Initial payment rate (% of earnings base) Earnings base2 Minimum benefit Maximum benefit Permitted employment and disregards Additions for dependent family members
“National
currency” % of AW “National
currency” % of AW
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12]

Australia — — — — — — — — — — — —
Austria E+C: one year in two. “C
(above an earnings limit)” 0 9 55 Net — — 14 049 40 No reduction up to EUR 3881.52, total loss above. Exception: benefit reduced when

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