Advanced Search
MyIDEAS: Login to save this paper or follow this series

Unemployment insurance savings accounts in Latin America : overview and assessment

Contents:

Author Info

  • Ferrer, Ana M.
  • Riddell, W. Craig

Abstract

The unemployment protection systems that exist in most Latin American economies are generally considered inadequate in terms of providing insurance to workers and are prone to generate stratified labor markets. Recently, research effort and policy interest has turned to Unemployment Insurance Savings Accounts (UISAs) as an alternative to traditional systems of unemployment insurance. UISAs are schemes of individual mandatory savings that smooth income over an individual's life cycle time rather than pooling unemployment risk over the total working population at a point in time. Although this form of unemployment insurance diminishes the moral hazard problems associated with traditional insurance methods, it presents problems of its own. First, it is questionable that these systems provide adequate protectionagainst unemployment risk. Additionally, their effects on the promotion of informal labor markets and their administrative costs are yet to be determined. Finally, the effectiveness as a form of unemployment insurance depends critically upon the performance and credibility of the financial institutions managing the funds. This paper examines the experience of Latin American countries that use UISAs, with the hope of highlighting the problems of the system and identifying areas for future theoretical and empirical work. In conclusion, the overall effect of UISAs depends on a vast array of specific country characteristics and program parameters. The way the system is implemented, existing labor regulation, the extent of the informal economy and the scope for collusive behavior greatly influence the success of these programs. This calls for a more extensive research effort in the area.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2009/07/01/000334955_20090701045214/Rendered/PDF/491730NWP0Unem10Box338943B01PUBLIC1.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Social Protection Discussion Papers with number 49173.

as in new window
Length:
Date of creation: 01 Jun 2009
Date of revision:
Handle: RePEc:wbk:hdnspu:49173

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Labor Markets; Labor Policies; Access to Finance; Banks&Banking Reform;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Milazzo, Annamaria & Grosh, Margaret, 2008. "Social safety nets in World Bank lending and analytical work : FY2002 - 2007," Social Protection Discussion Papers, The World Bank 44730, The World Bank.
  2. Parsons, Donald O., 2010. "The Firing Cost Implications of Alternative Severance Pay Designs," IZA Discussion Papers 4967, Institute for the Study of Labor (IZA).
  3. F. Angel-Urdinola, Diego, 2008. "Can the Introduction of a Minimum Wage in FYR Macedonia Decrease the Gender Wage Gap?," Policy Research Working Paper Series, The World Bank 4795, The World Bank.
  4. Milan Vodopivec, 2013. "Introducing unemployment insurance to developing countries," IZA Journal of Labor Policy, Springer, Springer, vol. 2(1), pages 1-23, December.
  5. Almeida, Rita & Carneiro, Pedro, 2009. "Enforcement of labor regulation and firm size," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 28-46, March.
  6. James J. Heckman & Carmen Pages, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," NBER Working Papers 7773, National Bureau of Economic Research, Inc.
  7. Parsons, Donald O., 2011. "Severance Pay Mandates: Firing Costs, Hiring Costs, and Firm Avoidance Behaviors," IZA Discussion Papers 5876, Institute for the Study of Labor (IZA).
  8. Galasso, Vincenzo & Gatti, Roberta & Profeta, Paola, 2008. "Investing for the Old Age: Pensions, Children and Savings," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6825, C.E.P.R. Discussion Papers.
  9. Vodopivec, Milan & Dolenc, Primoz, 2008. "Live longer, work longer : making it happen in the labor market," Social Protection Discussion Papers, The World Bank 42471, The World Bank.
  10. Reyes, Gonzalo & van Ours, Jan C. & Vodopivec, Milan, 2010. "Incentive Effects of Unemployment Insurance Savings Accounts: Evidence from Chile," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7632, C.E.P.R. Discussion Papers.
  11. Braithwaite , Jeanine & Mont , Daniel, 2008. "Disability and poverty : a survey of World Bank poverty assessments and implications," Social Protection Discussion Papers, The World Bank 42754, The World Bank.
  12. Amin, Mohammad, 2007. "Labor regulation and employment in India's retail stores," Policy Research Working Paper Series, The World Bank 4314, The World Bank.
  13. Bhattamishra, Ruchira & Barrett, Christopher B., 2010. "Community-Based Risk Management Arrangements: A Review," World Development, Elsevier, Elsevier, vol. 38(7), pages 923-932, July.
  14. Ninno, Carlo del & Subbarao, Kalanidhi & Milazzo, Annamaria, 2009. "How to make public works work : a review of the experiences," Social Protection Discussion Papers, The World Bank 48567, The World Bank.
  15. Macours, Karen & Vakis, Renos, 2010. "Seasonal Migration and Early Childhood Development," World Development, Elsevier, Elsevier, vol. 38(6), pages 857-869, June.
  16. Almeida, Rita & Aterido, Reyes, 2008. "The incentives to invest in job training : do strict labor codes influence this decision?," Social Protection Discussion Papers, The World Bank 46189, The World Bank.
  17. Vodopivec, Milan & Madzar, Lilijana & Dolenc, Primoz, 2009. "Non-performance of the severance pay program in Slovenia," Social Protection Discussion Papers, The World Bank 47070, The World Bank.
  18. Vodopivec, Milan & Arunatilake, Nisha, 2008. "Population aging and the labor market : the case of Sri Lanka," Social Protection Discussion Papers, The World Bank 44927, The World Bank.
  19. Almeida, Rita & Carneiro, Pedro, 2009. "The return to firm investments in human capital," Labour Economics, Elsevier, Elsevier, vol. 16(1), pages 97-106, January.
  20. Almeida, Rita & Carneiro, Pedro, 2008. "Mandated benefits, employment, and inequality in a dual economy," Social Protection Discussion Papers, The World Bank 45051, The World Bank.
  21. Avato, Johanna & Koettl, Johannes & Sabates-Wheeler, Rachel, 2009. "Definitions, good practices, and global estimates on the status of social protection for international migrants," Social Protection Discussion Papers, The World Bank 49172, The World Bank.
  22. Holzmann, Robert & Pouget, Yann & Vodopivec, Milan & Weber, Michael, 2011. "Severance pay programs around the world : history, rationale, status, and reforms," Social Protection Discussion Papers, The World Bank 62726, The World Bank.
  23. Peracchi, Franco & Perotti, Valeria & Scarpetta, Stefano, 2007. "Informality and social protection : preliminary results from pilot surveys in Bulgaria and Colombia," Social Protection Discussion Papers, The World Bank 41541, The World Bank.
  24. Braithwaite, Jeanine & Carroll, Richard & Mont, Daniel & Peffley, Karen, 2008. "Disability and development in the World Bank : FY2000-2007," Social Protection Discussion Papers, The World Bank 45178, The World Bank.
  25. Haja, Nirina Andrianjaka & Milazzo, Annamaria, 2008. "Highly labor-intensive public works in Madagascar : issues and policy options," Social Protection Discussion Papers, The World Bank 47357, The World Bank.
  26. Barrett , Christopher B & Carter , Michael R & Ikegami , Munenobu, 2008. "Poverty traps and social protection," Social Protection Discussion Papers, The World Bank 42752, The World Bank.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:hdnspu:49173. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Raiden C. Dillard).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.