Social and Occupational Security and Labour Market Flexibility in Sweden: The Case of Unemployment Compensation

26 Pages Posted: 13 Aug 2007

See all articles by Gabriella Sjögren Lindquist

Gabriella Sjögren Lindquist

Stockholm University

Eskil Wadensjo

Stockholm University - Swedish Institute for Social Research (SOFI); IZA Institute of Labor Economics; Stockholm University Linnaeus Center for Integration Studies (SULCIS)

Date Written: July 2007

Abstract

The Swedish labour market and social policy is aimed at facilitating flexibility in the labour market. The active labour market policy and the design of the social security pension system are two frequently mentioned examples of that policy. This does not necessarily mean that all policy programs are in accordance with the goal of enhancing flexibility. In this paper we analyze one part of the social and occupational (collectively bargained) security system - the compensation at unemployment with special emphasis on the schemes complementing compensation from the unemployment insurance scheme. We focus on the effects of those systems on labour market flexibility. Some parts of these complementing systems support mobility and return to work after layoffs, other parts of the systems may lead to that workers avoid job mobility and to prolonged periods of unemployment. Of special interest is that those complementing systems differ between different sectors of the labour market and that many, especially young people, are not covered.

Keywords: unemployment, unemployment insurance, occupational insurance, severance pay

JEL Classification: J65, J64, J32

Suggested Citation

Lindquist, Gabriella Sjögren and Wadensjo, Eskil, Social and Occupational Security and Labour Market Flexibility in Sweden: The Case of Unemployment Compensation (July 2007). IZA Discussion Paper No. 2943, Available at SSRN: https://ssrn.com/abstract=1006195 or http://dx.doi.org/10.2139/ssrn.1006195

Gabriella Sjögren Lindquist

Stockholm University ( email )

Universitetsvägen 10
Stockholm, Stockholm SE-106 91
Sweden

HOME PAGE: http://www.sofi.su.se/~gsj/

Eskil Wadensjo (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Universitetsvägen 10F
SE-106 91 Stockholm
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Stockholm University Linnaeus Center for Integration Studies (SULCIS) ( email )

SE-106 91 Stockholm
Stockholm
Sweden

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