Cost of Non-Europe of the Absence of an Unemployment Insurance Scheme for the Euro Area
Cost of Non-Europe of the Absence of an Unemployment Insurance Scheme for the Euro Area
Period:
01.10.2013 – 31.03.2014
From the perspective of optimal currency areas, a monetary union such as the euro area which is characterized by low labor mobility needs fiscal institutions which may have stabilizing effects in the case of asymmetric macroeconomic shocks. In this project potential costs and benefits of a euro area unemployment insurance system will be examined. The empirical analysis will be conducted with EUROMOD, a tax-benefit microsimulation model for the European Union, which allows for a micro-founded ex-ante evaluation.
