LABOR MOBILITY AND DECISION-MAKING ON SOCIAL INSURANCE IN AN INTEGRATED MARKET

AM LEJOUR*, HAA VERBON

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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.

Original languageEnglish
Pages (from-to)161-185
Number of pages25
JournalPublic Choice
Volume79
Issue number1-2
Publication statusPublished - Apr 1994
Externally publishedYes

Keywords

  • INCOME-REDISTRIBUTION
  • FEDERAL SYSTEM
  • EFFICIENCY
  • GOVERNMENT
  • MIGRATION
  • STATES

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