An Unemployment Re-Insurance Scheme for the Eurozone? Stabilizing and Redistributive Effects

A new policy report from EconPol Europe provides the first analysis to evaluate an unemployment re-insurance scheme for the euro area as regards potential stabilizing and redistributive effects. The novel feature of the study is that it separates the stabilization effects of the re-insurance scheme into two channels relevant to the current political debate: First, it indicates the potential for stabilization through payments between countries (so-called interregional stabilization). Second, the study estimates the so-called intertemporal stabilization potential. The distinction between the two stabilization channels is crucial for assessing the possible value added of different reform options.