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Options of public income support for the unemployed in the Philippines and social protection

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Author Info

  • Esguerra, Jude H.
  • Ogawa, Makoto
  • Vodopivec, Milan

Abstract

How can the income support for the unemployed Filipino workers be improved? The study analyzes both arguments in favor of, and against each of the following programs: unemployment insurance, unemployment assistance, severance pay, unemployment insurance savings accounts, public works, and self-employment programs. In doing so, it addresses the following questions: How does a candidate program interact with other labor market institutions? Does the program respond to a country's income shocks such as recessions, and natural disasters? Does the country have sufficient administrative capacity to carry out a program? Does the program fit into existing formal, and informal mechanisms of social risk management? Is there a risk of disrupting, or displacing existing mechanisms, such as transfers between family members? Is the program attuned to the prevailing norms, and culture? The study concludes that all programs have certain advantages, and disadvantages - an argument for the multiplicity of programs and flexibility of their use. Nonetheless, to enhance income protection, the paper proposes a two-prong approach: a) the expansion of public works, and b) the introduction of a new program - individual savings accounts, i.e., either as unemployment insurance savings accounts, or comprehensive savings accounts covering contingencies such as education, health, housing, and old age.

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Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 25509.

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Date of creation: 30 Apr 2002
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Handle: RePEc:wbk:hdnspu:25509

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Related research

Keywords: Environmental Economics&Policies; Services&Transfers to Poor; Safety Nets and Transfers; Rural Poverty Reduction; Health Economics&Finance;

References

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  1. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
  2. Arsenio M. Balisacan, 2001. "Poverty in the Philippines : An Update and Reexamination," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 38(1), pages 15-52, June.
  3. Holmlund, Bertil, 1998. " Unemployment Insurance in Theory and Practice," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 113-41, March.
  4. Vodopivec, Milan & Worgotter, Andreas & Raju, Dhushyanth, 2003. "Unemployment benefit systems in Central and Eastern Europe : a review of the 1990s," Social Protection Discussion Papers 26307, The World Bank.
  5. Martin Feldstein & Daniel Altman, 2007. "Unemployment Insurance Savings Accounts," NBER Chapters, in: Tax Policy and the Economy, Volume 21, pages 35-64 National Bureau of Economic Research, Inc.
  6. Carmen Pagés-Serra & James J. Heckman, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," Research Department Publications 4227, Inter-American Development Bank, Research Department.
  7. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March.
  8. Ubbarao, K. & Ahmed, A.U. & Teklu, T., 1996. "Selected Social Safety Net Programs in the Philippines. Targeting, Cost Effectiveness, and option for Reform," World Bank - Discussion Papers 317, World Bank.
  9. Woden, Q.T. & Ayres, W. & Barenstein, M. & Hicks, N. & Lee, K. & Maloney, W. & Peeters, P. & Siaens, C. & Yitzjaki, S., 2000. "Poverty and Policy in Latin America and Caribeean," Papers 467, World Bank - Technical Papers.
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Cited by:
  1. Alessio J. G. Brown & J. Michael Orszag & Dennis J. Snower, 2006. "Unemployment Accounts and Employment Incentives," Kiel Working Papers 1274, Kiel Institute for the World Economy.

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