Self- and Reinsurance against Labour Market Shocks: a New Proposal for the Eurozone

Positive economic developments in Europe in recent years do not change the fact that there is an urgent need for reform. That is why the proposals by the French President Macron, the European Commission and, most recently, the signal sent by the “New Beginning for Europe” featured in the German government’s coalition agreement, are all encouraging signs. We are nevertheless still a long way off any political consensus over how exactly a reform programme should look. Proposals of self and reinsurance against labour market shocks could be a key component of such a consensus. Such insurance would facilitate far more effective cushioning against economic shocks in the Eurozone due to the high share of national self-insurance, with practically no incentive effects, let alone long-term transfers.

"Self- and Reinsurance against Labour Market Shocks: a New Proposal for the Eurozone" will be discussed by ifo President Clemens Fuest and SPD Euro MP Jakob von Weizsäcker along with German MP Ralph Brinkhaus, CDU, and Gerhard Schick, Alliance 90/The Greens, as well as Professor of Economics Sebastian Dullien. The discussion will be chaired by Cerstin Gammelin, Süddeutsche Zeitung.

Featured Concepts

Sebastian Dullien, Jonas Fernández, Marc López, Gero Maass, Daniel del Prado, Jakob von Weizsäcker, "Fit for purpose: a German-Spanish proposal for a robust European Unemployment Insurance", Friedrich-Ebert-Stiftung, PDF Download. 

Agnès Bénassy-Quéré, Markus K Brunnermeier, Henrik Enderlein, Emmanuel Farhi, Marcel Fratzscher, Clemens Fuest, Pierre-Olivier Gourinchas, Philippe Martin, Florence Pisani, Hélène Rey, Isabel Schnabel, Nicolas Véron, Beatrice Weder di Mauro, Jeromin Zettelmeyer, "Reconciling risk sharing with market discipline: A constructive approach to euro area reform", CEPR Policy Insights 91, January 2018,  PDF Download.

EconPol Publications

Alcidi, Cinzia, Mathias Dolls, Clemens Fuest, Carla Krolage, Florian Neumeier, "The Nature of Shocks in the Eurozone and Their Absorption Channels", EconPol Policy Report 3, November 2017, PDF Download. 

Information: www.ifo.de/de/w/8kRBQw5f 

Contact:
Annette Marquardt
ifo Institute 
Phone: +49(0)89/9224-1604
Email: marquardt@ifo.de