The interactions and interdependencies of insolvency development and the insolvency contingency system with economic dynamics are paid little attention in the economic literature, both theoretically and empirically. This also applies in particular to the economic effects of the state insolvency contingency institution for employees affected by a corporate insolvency.This study therefore provides a comprehensive overview of the insolvency development and the insolvency contingency system in Austria, addressing both the macroeconomic determinants and the implications along two specific research questions.