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Efectos de las prestaciones por desempleo del Mecanismo de Protección al Cesante sobre la probabilidad de ocuparse en la formalidad y sobre la calidad de los emparejamientos
[Effects of unemployment benefits from the Unemployment Protection Scheme on the likelihood of getting a formal employment and improving the matching quality]

Author

Listed:
  • Linares Sánchez, Jose

Abstract

In 2013, the Colombian government created the “Mecanismo de Proteccion al Cesante”, a mechanism for unemployed individuals to reach consumption smoothing and facilitate their re-entering into the workforce. This study estimates the medium (12 months) and long term (18 months) impacts of the unemployment benefits on the probability to access to a formal employment and on labour-income. The document adapts and applies a non-experimental evaluation methodology —differences in differences (DD)—. It was discovered that being a beneficiary of MPC increases, only in the medium term, the probability to remain in the formal labour market, understood as the social security contribution to health care and pension benefits, but in the long term this probability decreases. Also, in the medium and long term, it was found that the program has negative impacts on the matching quality of the employments achieved by the beneficiaries of the program, which means, the scheme fails to stabilize the income of the unemployed to obtain better job matches in the form of better-paying jobs.

Suggested Citation

  • Linares Sánchez, Jose, 2020. "Efectos de las prestaciones por desempleo del Mecanismo de Protección al Cesante sobre la probabilidad de ocuparse en la formalidad y sobre la calidad de los emparejamientos [Effects of unemploymen," MPRA Paper 106698, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106698
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Unemployment insurance; Colombia; impact evaluation; unemployment protection scheme.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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