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Optimal unemployment insurance : a guide to the literature

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  • Karni, Edi

Abstract

Unemployment insurance has been the subject of numerous theoretical and empirical studies. These studies elucidate the benefits and the cost of unemployment insurance, namely, the improved allocation of risk bearing and the reduced incentives for work. In the past two decades a branch of the literature has emerged that deals with the optimal design of unemployment insurance. This literature has been influenced by ideas and methods from the field of information economics and theories from the field of labor economics. The result is a collection of models designed to highlight a variety of issues pertaining to the provision of optimal unemployment insurance. This report reviews these issues, summarizes the relevant literature, assesses its accomplishments, and points out problems that require further study.

Suggested Citation

  • Karni, Edi, 1999. "Optimal unemployment insurance : a guide to the literature," Social Protection Discussion Papers and Notes 20121, The World Bank.
    • Handle: RePEc:wbk:hdnspu:20121
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    Citations

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    Cited by:

    1. David Robalino & Michael Weber, 2013. "Designing and implementing unemployment benefit systems in middle and low income countries: beyond risk-pooling vs savings," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.
    2. Al-Zufairy, Abdul Wahhab Mohamed, 2003. "Unemployment In The Gulf Countries: Reasons And Remedies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(3).
    3. Agenor,Pierre-Richard, 2003. "The mini-integrated macroeconomic model for poverty analysis : a framework for analyzing the unemployment and poverty effects of fiscal and labor market reforms," Policy Research Working Paper Series 3067, The World Bank.
    4. Hicks, Norman & Wodon, Quentin, 2001. "Social protection for the poor in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Eric Levin & Robert Wright, 2001. "Unemployment insurance, moral hazard, and economic growth," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 373-384, November.

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