Institute senior economist Christopher J. O'Leary is the organizer of a session at the upcoming Association for Public Policy Analysis and Management (APPAM) International Conference. O'Leary is also coauthor of a paper being presented during the session.
Conference details
Theme: Inequalities—Addressing the Growing Challenge for Policymakers Worldwide
Dates: June 13-14, 2016
Location: London School of Economics
Session
Title: "Improving income equality through a European unemployment insurance system"
Tuesday, June 14, 2016: 11:30 AM—1:00 PM
Clement House, 2nd Floor, Room 04
Chair: David Grubb, Organization for Economic Cooperation and Development (OECD)
Session organizer: Christopher J. O’Leary, W.E. Upjohn Institute for Employment Research
Papers:
- A European Unemployment Benefits Scheme: The rationale and the challenges ahead," by Ilaria Maselli, Conference Board, Miroslav Beblavý, Center for European Policy Studies (CEPS), Karolien Lenaerts, CEPS, and Gabriele Marconi, OECD
- "Institutional moral hazard in the multi-tiered regulation of unemployment: Conclusions from eight country case studies," by Frank Vandenbroucke, University of Amsterdam, and Chris Luigjes, University of Amsterdam
- "Lessons from the American federal-state unemployment insurance system for a European unemployment benefits system," by Christopher J. O’Leary, W.E. Upjohn Institute for Employment Research, and Burt Barnow, George Washington University
- “The history and debate in Europe on a European Unemployment Benefits Scheme,” by Robert Strauss, European Commission
Discussant: Suzanne Simonetta, U.S. Department of Labor
Discussant: Georg Fischer, European Commission
Session abstract:
Unemployment is a significant driver of income inequality, but its impact can be reduced by unemployment benefit systems. Both the incidence of unemployment and the coverage and generosity of unemployment insurance (UI) benefit systems vary greatly across EU member states. This policy variation helps explain income inequalities within and between EU countries, and contributes to social tensions on the continent. In European policy circles there is a growing awareness of the need to equip the European Monetary Union with a pan-European stabilization capacity to help mitigate the impact of economic shocks. Proposals currently under consideration include a European Unemployment Benefit Scheme (EUBS) to support or supplement national UI systems. An EUBS would provide Europe with a true “multi-level” way to manage the policy response to unemployment.
This session examines the rationale and challenges for such an EUBS. Relevant policy issues are illuminated by aspects of multi-level UI systems in existing national systems. The four papers grow out of a project initiated by the Center for European Policy Studies (CEPS). The papers consider the incentive relations for UI programs in multi-tiered administrative and governmental arrangements in both the national and international contexts. The first paper sets the stage by explaining the context and rationale for a potential EUBS. A paper on the U.S. system highlights how a multi-level UI system operates and its implications for income inequality. The third paper draws on eight case studies of countries with multi-level regulation of unemployment, and describes the overall lessons that can be learned from their experiences, notably with regard to the problem of "institutional moral hazard." Aspects of benefit generosity and coverage, the impact on inequality, incentives, moral hazard, and financing will be addressed where relevant in each paper.