Sweden Finland Austria

The level of compensation
In this case the ’standard’ events are unemployment for 3 months and for the whole year.
The calculations have been made for two situations, one where the unemployed single
APW is eligible for insurance benefits and one where he or she is not. The results of the
calculations for the two situations are summarized in table 2.4 and 2.5 respectively. The
effect on disposable income is calculated in relation to the annual disposable income of the
APW. Only Canada and Great Britain have a max. benefit period shorter than a year in
1997. Social assistance benefits (JSA (IB) in GB) have been applied for the rest of the year
in these cases.
Table 2.4.
Effects on disposable income of being unemployed for 3 months and the whole year in 8
countries, 1997.
DK
S
FIN
A
D
NL
GB
CAN
Eligible for insurance, 3 months’ unemployment
Compensation per-
53
65
46
56
60
70
15
46.5
centage
1
)
1
)
Change in disposable
-9.2
-8.3
-9.8
-7.6
-6.7
-6.1-1
9.1 -9.6
income, %
Eligible for insurance, 12 months’ unemployment
Compensation per-
53
69
50
56
60
70
15
48
centage
1
)
1
)
Change in disposable
-37.0
-29.2
-39.3
-43.7
-41.6
-27.4
-79.8
-44.0
income, %
1)
The compensation percent is after tax.
The decrease in disposable income is smallest in the Netherlands followed by Germany
and Austria when the APW is unemployed for 3 months and eligible for insurance benefits.
The decrease is somewhat larger in Sweden, Denmark, Canada and Finland, smallest in S,
largest in FIN. Great Britain has the largest decrease of all. The picture is somewhat
different for the APW who is unemployed for the whole year, and the 
ranking’ of the
countries has changed. The Netherlands is still the country with the smallest change, but
the German change is now larger than the Swedish, Danish and the Finnish, but still

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32
8)
Housing benefits are also available in most of the other countries, but not to the same extent
as in GB.
smaller than the Austrian and Canadian. It is especially the variation in the progression of
the tax schemes and the German and Austrian benefits being on a net (after tax and social
contribution) basis, which causes the changed picture from 25 per cent to full unemploy-
ment. In Great Britain, which still has the largest change, it is possible to supplement the
insurance benefit with other benefits, especially for housing , an aspect not included in the
8)
calculation. 
The results in table 2.4 refer to the income level of the APW. In the section ’Comments on
table 2.3’ it was, however, mentioned that the profiles for the schemes would differ consid-
erably with varying income. Graph 2.1 illustrates the net replacement rate profiles for U.B.
schemes in six of the countries studied (net replacement rate: 100 + ’change in disposable
income, per cent’ from table 2.4). The cases in graph 2.1 are from 1994. The net replace-
ment rates have changed since then, but the form of the profiles is still valid.

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33
Graph 2.1
Net replacement rates 1994. Single worker unemployed for 25 per cent and 100 per cent of
the year. Income varies from ½ to 2 APW.

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