We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
UNEMPLOYMENT RESERVES: SOME QUESTIONS OF PRINCIPLE.
- Authors
Meriam, R. S.
- Abstract
The article discusses the economic theory of unemployment reserves in the United States. Several economists have made use of the argument that wages are inadequate and therefore contributions should be levied upon the employers. In every business decision, whether on hiring more or less labor or substituting slightly different methods of production, the employer will be confronted with the fact that labor is more expensive. Unemployment reserves present some peculiarities. Downward pressure on wage rates comes in general from the competition for employment among the unemployed. The advantages of contributions from employers and wage-earners respectively are questions of political and administrative expediency. The additional financial incentive to stabilize employment depends on the technical form of contribution and, upon the likelihood that the peculiar technical form will be adopted. Several important consequences follow from the proposition that a pooled reserve does not meet the strict technical requirements of insurance.
- Subjects
UNITED States; UNEMPLOYMENT; INSURANCE reserves; WAGES; EMPLOYERS; MONETARY incentives
- Publication
Quarterly Journal of Economics, 1933, Vol 47, Issue 2, p312
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883690