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Protecting Workers against Unemployment in Latin America and the Caribbean: Evidence from Argentina

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  • Martín Gonzalez Rozada
  • Lucas Ronconi
  • Hernan Ruffo

Abstract

This paper takes advantage of several reforms that provide time and cross sectional variation to identify the effects of unemployment insurance and severance payments on the duration of unemployment and on the separation probability in Argentina. Administrative data permits analysis of the duration of unemployment of covered spells with detailed information about transfers and their duration, while household surveys permit the study of separation probability and transitions to informal jobs, which are not observed in administrative data. It is found that unemployment duration increases significantly when unemployment insurance transfers are higher or are provided for a longer period; the effects of severance pay on unemployment duration are less robust. On the other hand, higher severance pay is found to reduce separation probability, while unemployment insurance transfers have a positive but small effect on separations.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4759.

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Date of creation: Dec 2011
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Handle: RePEc:idb:wpaper:4759

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  1. Lalive, Rafael & van Ours, Jan C. & Zweimüller, Josef, 2004. "How Changes in Financial Incentives Affect the Duration of Unemployment," IZA Discussion Papers 1363, Institute for the Study of Labor (IZA).
  2. Álvarez-Parra, Fernando & Sánchez, Juan M., 2009. "Unemployment insurance with a hidden labor market," Journal of Monetary Economics, Elsevier, vol. 56(7), pages 954-967, October.
  3. Rafael Lalive & Jan Van Ours & Josef Zweimüller, 2006. "How Changes in Financial Incentives Affect the Duration of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 73(4), pages 1009-1038, October.
  4. Raj Chetty, 2008. "Erratum: Moral Hazard versus Liquidity and Optimal Unemployment Insurance," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1197-1197, December.
  5. David Card & Raj Chetty & Andrea Weber, 2006. "Cash-on-Hand and Competing Models of Intertemporal Behavior: New Evidence from the Labor Market," NBER Working Papers 12639, National Bureau of Economic Research, Inc.
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  1. Protecting Workers against Unemployment in Latin America and the Caribbean: Evidence from Argentina
    by Maximo Rossi in Wikiprogress América Latina on 2012-05-22 16:38:00

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