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Inter-Industry Differences in Male Percentage Unemployment Compensation - A Cross Section Analysis for Irish Manufacturing Industry. Quarterly Economic Commentary Special Article, November 1976

Abstract

It is widely accepted that unemployment rates vary substantially amongst industrial sectors in Ireland. However, it does not appear to be equally recognised that there are substantial inter-industry differences in the percentage of net earnings which an unemployed person receives from Unemployment and Pay-Related Benefits. These differences are accentuated by the non-uniformity of the dependency structure of the labour force in different industries. This paper, therefore, comprises two parts. Part 1 is methodological and consists of an attempt to compute, under fairly restrictive assumptions, for each of 36 manufacturing industries, the proportion of net earnings obtained from unemployment compensation. This is done for persons of differing dependency status. These proportions are then weighted by the dependency distribution of the unemployed in each industry in order to obtain a representative percentage compensation figure for each of the 36 industries. Some space is devoted to an examination of these results. In Part 2 an attempt is made to explore the hypothesis that levels of unemployment compensation may be an important factor in explaining the extent and duration of registered unemployment

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