In the context of labour-market institutions, the 'Ghent System' refers to:
A. Only private insurance markets
B. A system in which trade unions play a major role in the administration of unemployment insurance, contributing to high union density
C. A pure market system without any unions
D. Only government-run unemployment insurance with no union role
Answer: Option B
Solution (By JKSSB Mock Tests)
The Ghent system, historically associated with certain Nordic and Low Countries, links unemployment benefits to union membership or administration, thereby providing a selective incentive for workers to join unions.
No comments yet. Be the first to start the discussion!