On the introduction of private unemployment insurance in Germany (original publication in German)

The authors calculate the statistic fundamentals of a dual system of private unemployment insurance, using data of the year 2000. It is shown how much the individual employee would have to invest for a variety of unemployment payments and for a variety of individual “real” risks. In addition, it is demonstrated that each individual can reduce his/her insurance premium by simply declaring a higher degree of regional, professional, or income-related mobility. On the employers’ side it is elaborated that, via autoregressive processes, employment increases, and that at the same time each employer reduces the rate of his firm’s unemployment tax.

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