The Role of Default (Not Bankruptcy) as Unemployment Insurance: New Facts and Theory

Author(s):  
Kyle Herkenhoff
1987 ◽  
Vol 19 (2) ◽  
pp. 193-208 ◽  
Author(s):  
Gail L. Savage

The interwar period posed unprecedented challenges to the English government. Unemployment, poverty, and fiscal crisis dogged policy-makers throughout the 1920s and 1930s. Governmental efforts to deal with the social and economic dislocation caused by the world-wide, post-war depression did not meet with much success. Opinion, both popular and scholarly, has tended to judge the government's domestic record rather harshly. The growing range of government activity overseen by an increasingly homogeneous civil service centralized under the direction of the Treasury has engendered some suspicion about the role of official advice in formulating policies widely regarded as, at best, ineffective and, at worst, wrong-headed and even oppressive. The Ministry of Health seemed more concerned to stem the demands on the Exchequer than to ameliorate living conditions among the poor. The Ministry of Labour, engulfed by the administrative nightmare of unemployment insurance, could not also devise programs to reduce the rate of unemployment. The Treasury not only failed to produce any innovative strategy for the country's fiscal problems, their insistence on reducing government expenditure and maintaining a balanced budget—the so-called “Treasury view”—hung like a millstone around the necks of the spending departments. Even if officials had pressed aggressive and creative programs of social welfare upon political leaders, the Treasury obsession with what we now call the “bottom line” would have effectively denied them the resources necessary to implement any new program.


2002 ◽  
Vol 5 (3) ◽  
pp. 681-703 ◽  
Author(s):  
Atila Abdulkadiroğlu ◽  
Burhanettin Kuruşçu ◽  
Ayşegül Şahin

ILR Review ◽  
1987 ◽  
Vol 41 (1) ◽  
pp. 3-16 ◽  
Author(s):  
John T. Addison ◽  
Pedro Portugal

Using data from the 1984 Displaced Worker Survey, the authors model the determinants of time without work following job displacement for a large sample of workers laid off because of plant shutdowns between 1979 and 1984. The major focus of the paper is on the role of advance notification in mitigating unemployment. The estimating procedure accommodates right censored observations stemming from continuing or open-ended spells of unemployment. Advance notification is found to have significantly reduced the duration of unemployment of those notified workers who did not draw unemployment insurance benefits and, in particular, of those who left the plant prior to termination. Advance notice had much less effect on the time without work of notified workers whose spell length of unemployment was long enough for them to collect unemployment insurance benefits.


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