Alternative Unemployment Insurance Systems - The Example of the United States and the United Kingdom (original publication in German)

Comparing the unemployment insurance systems of the United States and of the United Kingdom it is shown that the US unemployment insurance (UI) is the only system that provides for a negative feedback between UI expenditures and layoffs (“experience rating”). The UK has no specific UI: Unemployment benefits are paid by the “National Insurance” which also covers other elements of social security, such as health care and retirement payments. Focussing therefore on the US literature it turns out that a major part deals with the demand side of the labour market, whereas the German literature rather concentrates on the supply side.

Kiel Institute Expert