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• The role of the voluntary unemployment insurance system in the trade union movement

  43-70

  Nora Ilona Elek

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  The purpose of this study is to analyse the institutional environment of the state-subsidised, trade union-managed national voluntary unemployment insurance system (the so-called Ghent-system) that influences the selective incentive feature of this system based on the literature. Another goal is to run cluster analysis in order to show whether Ghent-countries – Denmark, Finland and Sweden – differ from other countries based on this environment. The analysis is based on Olson’s (1965) concept of by-product theory. The essence of this theory is that large groups are able to increase, maintain and thus realize their lobbying activities by applying incentives to individuals. In the case of trade unions, the availability of voluntary unemployment insurance is a significant incentive. Its impact on trade union movement is usually analysed as a dummy variable, but this article focuses on institutions that are important to the Ghent-system.

  Journal of Economic Literature (JEL) code: J51