Designing and Implementing Unemployment Benefit Systems in Middle and Low Income Countries : Key Choices between Insurance and Savings Accounts

Several middle income countries are considering reforms of severance pay regulations to both increase flexibility for firms and better protect workers. Policy discussions then often revolve around whether to adopt an unemployment insurance (UI) sch...

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Bibliographic Details
Main Authors:	Robalino, David A., Weber, Michael
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAMS BENCHMARKS BENEFICIARIES BENEFICIARY BENEFIT SCHEMES BORROWING CASH TRANSFER CASH TRANSFER PROGRAMS CASH TRANSFERS CONDITIONAL CASH CONTRIBUTION RATE CRISES CURRENT EXPENDITURES DEBT DECENTRALIZATION DEFICITS DRIVERS ECONOMIC SURVEYS ELIGIBILITY REQUIREMENTS EMPLOYABILITY EMPLOYMENT DURATIONS EMPLOYMENT GENERATION EMPLOYMENT INCENTIVES EMPLOYMENT OFFICE EMPLOYMENT OFFICES EMPLOYMENT PROJECT EMPLOYMENT SERVICE EMPLOYMENT STATUS ENTREPRENEURSHIP EXPECTED VALUE FINANCIAL MARKETS FINDING JOBS GDP GDP PER CAPITA GENERAL EQUILIBRIUM HEALTH INSURANCE HEALTH PROGRAMS HIGH UNEMPLOYMENT HUMAN DEVELOPMENT INCENTIVES TO SAVE INCOME INCOME GROUPS INCOME SUPPORT INCOME SUPPORT SYSTEMS INDIVIDUAL ACCOUNTS INFORMAL EMPLOYMENT INFORMAL SECTOR INNOVATIONS INSTITUTIONAL CAPACITY INSURANCE PROGRAM INSURANCE SCHEMES INSURANCE SYSTEMS INTEREST RATES JOB SEARCH JOB-SEARCH ASSISTANCE JOBS LABOR ECONOMICS LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET PERFORMANCE LABOR MARKETS LABOR POLICIES LABOR REGULATIONS LABOR SUPPLY LABOUR LABOUR ADMINISTRATION LABOUR MARKET MANDATORY CONTRIBUTIONS MANDATORY SAVINGS MIDDLE INCOME COUNTRIES MIDDLE INCOME COUNTRY MINIMUM WAGE NATIONAL PENSION NATURAL DISASTERS OLDER WORKERS PAYMENT SYSTEMS PAYROLL TAX PENSION PENSIONS POLITICAL ECONOMY POOR POSITIVE EFFECTS PRECAUTIONARY SAVINGS PRESENT VALUE PREVIOUS SECTION PRIVATE PENSION PRIVATE PROVIDERS PRIVATE SECTOR PRIVATE SECTOR COMPANIES PRIVATE SERVICE PRODUCTIVITY PROTECTING WORKERS PROTECTION SYSTEMS PUBLIC EMPLOYMENT PUBLIC EMPLOYMENT SERVICE PUBLIC EMPLOYMENT SERVICES PUBLIC WORKS PUBLIC WORKS PROGRAMS REAL WAGES REEMPLOYMENT BONUSES REGRESSION ANALYSIS RETIREMENT RISK POOLING RISK PROFILES RISK-POOLING SAFETY SAFETY NET SAFETY NET PROGRAMS SAFETY NETS SAVINGS ACCOUNTS SCHOOL FEEDING SERVICE PROVIDERS SEVERANCE PAY SEVERANCE PAY SYSTEMS SKILLED LABOR SKILLED WORKERS SKILLS TRAINING SOCIAL ASSISTANCE SOCIAL BENEFITS SOCIAL COHESION SOCIAL FUNDS SOCIAL INSURANCE SOCIAL INSURANCE PROGRAMS SOCIAL PROGRAMS SOCIAL PROTECTION SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL SERVICE SOCIAL WELFARE STABLE JOBS TARGETING TAXATION TEMPORARY EMPLOYMENT TRAINING PROGRAMS TRAINING PROVIDERS TRAINING SERVICES TRANSITION COUNTRIES TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT ASSISTANCE UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFIT PROGRAMS UNEMPLOYMENT BENEFIT SYSTEM UNEMPLOYMENT BENEFIT SYSTEMS UNEMPLOYMENT BENEFITS UNEMPLOYMENT COMPENSATION UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE PROGRAMS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELL UNEMPLOYMENT SPELLS UNSKILLED WORKERS VALUE ADDED VALUE ADDED TAXES WEALTH WELFARE SYSTEM WORKER WORKERS WORKFARE YOUNG WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2013/05/20171794/designing-implementing-unemployment-benefit-systems-middle-low-income-countries-key-choices-between-insurance-savings-accounts http://hdl.handle.net/10986/20142

Description
Summary:	Several middle income countries are considering reforms of severance pay regulations to both increase flexibility for firms and better protect workers. Policy discussions then often revolve around whether to adopt an unemployment insurance (UI) scheme or unemployment individual savings accounts (UISAs). Proponents of the first emphasize its ability to pool risks and introduce an element of solidarity. Critics point to its potentially negative effects on labor supply as individuals can have fewer incentives to seek, take or keep jobs. In this paper, the authors show that UI and UISAs are, in fact, particular cases of a more general design and that the crucial policy choice is in terms of how redistribution - to cover benefits for those who cannot save enough is financed. The authors outline key features of this general design and discuss trade-offs and possible solutions. The authors discusses issues related to implementation and show how recent technological developments around biometric identification can facilitate the monitoring of conditionalities related to participation in job-search and training activities.

Designing and Implementing Unemployment Benefit Systems in Middle and Low Income Countries : Key Choices between Insurance and Savings Accounts

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