Risk-Based Selection in Unemployment Insurance: Evidence and Implications

This paper studies whether adverse selection can rationalize a universal mandate for unemployment insurance (UI). Building on a unique feature of the unemployment policy in Sweden, where workers can opt for supplemental UI coverage above a minimum mandate, we provide the first direct evidence for adverse selection in UI and derive its implications for UI design. We find that the unemployment risk is more than twice as high for workers who buy supplemental coverage. Exploiting variation in risk and prices, we show how 25–30 percent of this correlation is driven by risk-based selection, with the remainder driven by moral hazard. Due to the moral hazard and despite the adverse selection we find that mandating the supplemental coverage to individuals with low willingness-to-pay would be suboptimal. We show under which conditions a design leaving choice to workers would dominate a UI system with a single mandate. In this design, using a subsidy for supplemental coverage is optimal and complementary to the use of a minimum mandate. (JEL D82, G22, J65)

Can Government Responses to Unemployment Reduce the Impact of Unemployment on Suicide?

Background: Unemployment is a well-documented risk factor for suicide. Findings from a number of studies suggest that government policy plays a crucial role in mediating the unemployment–suicide relationship. Aims: Our review was designed to assess whether government policies aimed at managing unemployment can moderate the impact of unemployment on suicide and self-harm. Method: A systematic search of the Medline, ProQuest, Scopus, and Web of Science databases was conducted. All original, English-language, peer-reviewed studies examining the impact of unemployment policy on rates of suicide or self-harm were eligible for inclusion. Results: Six unique studies were identified, each using an ecological design and suicide deaths as the outcome. Three of five studies looking at unemployment benefits found a negative association with suicide rates. Studies examining the impact of active unemployment policy and employment protection legislation found evidence of beneficial effects. The effects of the policies were small and had particular benefit in reducing suicide rates among men. Limitations: The ecological designs used may limit conclusions around causality. It is unclear whether the findings generalize to those in lower- and middle-income countries. Conclusion: The findings suggest that unemployment policies can mitigate the relationship between unemployment and suicide, particularly among men.

The Methodology of Tax Records for the Support of Tax Management

Tax policy is associated with the use and application of taxes and their instruments, which serve to influence macroeconomic and microeconomic processes in the economy. We can derive the tax policy from the applied economic policy of the state. The objectives of economic policy are aimed in particular at strengthening the effectiveness of the market mechanism, reducing pension and property inequality, as well as strengthening the internal and external stability of the state. In securing them, the state must take into account many internal, as well as international aspects, focused not only on economic but also on political, social, defenses, ethical and other interests. The individual goals that the state sets by its economic policy can be effectively achieved through goal-oriented policies that form part of economic policy. The state’s social policy, unemployment policy, tax policy, etc. fulfil their role. These policies then have a retroactive effect on the economic policy of the state. The subject or goal of tax policy is the application of tax principles and measures so that taxes serve to promote the economic, social and political goals of the state.

Bossing or Protecting? The Integration of Social Regulation into the Welfare State

This article is an empirical analysis of how social regulation is integrated into the welfare state. I compare health, migration, and unemployment policy reforms in Australia, Austria, Canada, Belgium, France, Germany, Italy, the Netherlands, New Zealand, Sweden, Switzerland, the UK, and the United States from 1980 to 2014. Results show that the timing of reform events is similar among countries for health and unemployment policy but differs among countries for migration policy. For migration and unemployment policy, the integration of regulation and welfare is more likely to entail conditionality compared to health policy. In other words, in these two policy fields, it is more common that claimants receive financial support upon compliance with social regulations. Liberal or Continental European welfare regimes are especially inclined to integration. I conclude that integrating regulation and welfare entails a double goal: “bossing” citizens by making them take up available jobs while expelling migrants and refugees for minor offenses; and protecting citizens from risks, such as noncommunicable diseases.

Strategic issue emphasis in parties’ election campaign statements

Parties should develop a consistent issue profile during an electoral campaign. Yet, manifestos, which form the baseline for a party’s programmatic goals in the upcoming legislative period, are usually published months before Election Day. We argue that parties must emphasize policy issues that are of key relevance to their likely voters in the last weeks of the election campaign, in which an increasing share of citizens make up their minds in terms of which party they will choose. To test this notion empirically, we draw on a novel data set that covers information on party representatives’ statements made during the final weeks of an election campaign in nine European countries. Focusing on the campaign messages of social democratic and socialist parties, we find that these parties indeed intensify their emphasis of unemployment policy, which is a salient issue for their core voter clienteles, particularly in times of economic hardship.