The labour supply of low-skilled – incentives in the unemployment insurance systems

The labour supply of low-skilled – incentives in the unemployment insurance systems. A comparative description based on Nordic countriesIn this report we describe and discuss the changing character of unemployment insurance (UI) systems in the Nordic countries in relation to the changing labour market situation of low skilled adults, from around 1990 and onwards. The focus is on how different characteristics of the national UI systems - and particularly the changes in these systems - may have affected the labour market position of low skilled by affecting their work incentives.This report has two main purposes: First, to construct a descriptive empirical basis for a discussion regarding the relationship between the design of the unemployment benefit system and the labour market performance of low-skilled compared to higher-skilled workers. The second purpose is to lay the foundation for a more systematic econometric analysis regarding the influence of the unemployment insurance systems on the labour market performance of low skilled - compared to high skilled workers in Norway, Sweden, Denmark and Finland.