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Unemployment insurance design and its effects: evidence from de Uruguayan case

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Author Info

  • Verónica Amarante

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Rodrigo Arim

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Andrés Dean

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

Abundant empirical evidence both for developed and developing countries finds that the design of unemployment insurance program may have important consequences on labor market outcomes. In particular, the design of UI system can affect both unemployment duration and employment outcomes. Recent changes in the design of the Uruguayan UI have implied modifications that may alter various labor market outcomes. In particular, we assess the impacts of the following modifications: the duration of UI was reduced from six to four months in the case of temporary laid off workers (suspension); the scheme of payments was changed for permanent laid off workers (job loss). Instead of a lump sum during six months, a decreasing scheme of payments was installed; and the duration of the UI can be extended up to one year for workers 50 or older.

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File URL: http://www.iecon.ccee.edu.uy/download.php?len=es&id=306&nbre=dt-09-12.pdf&ti=application/aux&tc=Publicaciones
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Bibliographic Info

Paper provided by Instituto de Economía - IECON in its series Documentos de Trabajo (working papers) with number 12-09.

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Length: 35 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:ulr:wpaper:dt-09-12

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Keywords: Unemployment insurance; Impact evaluation;

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  1. Rafael Lalive, 2006. "How do Extended Benefits Affect Unemployment Duration? A Regression Discontinuity Approach," CESifo Working Paper Series 1765, CESifo Group Munich.
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Cited by:
  1. Buendía García, Luis & Sanabria Martín, Antonio, 2013. "Productive Structure, Political Cycle And Inequality: The Case Of Uruguay, 2004-2011," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 22(ex).
  2. Verónica Amarante & Andrés Dean, 2012. "Dinámica del mercado laboral uruguayo," Documentos de Trabajo (working papers) 12-17, Instituto de Economía - IECON.
  3. Martin Leites & Sylvina Porras, 2013. "El enfoque de la Reacción en Cadena: una aplicación para explicar la dinámica del desempleo en Uruguay," Documentos de Trabajo (working papers) 13-11, Instituto de Economía - IECON.

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