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Not sure about that. The swedish unemployment subsidies are - for all their faults - really well adapted to industrial workers. If you have worked a year or more and done the bureacracy right, you will get about a year and a half on 80% of your former salary. So, in effect there is more demand reduction this way. Unless the rules for part-time unemployment covers this, which is more then I know. The rules keep on changing.

From a crass economic standpoint, if you first work less for a year and then is fired anyway you will get 80% of the lower wage (that is 64% of the wage you had before the crisis). Though from a social standpoint it is better to have everyone working 80%, as the effects of being shut out from productive society can be pretty harsh.

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by A swedish kind of death on Thu Mar 5th, 2009 at 04:56:06 AM EST
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