IDEAS home Printed from
   My bibliography  Save this article

Unemployment Insurance Design and Its Effects: Evidence for Uruguay


  • Verónica Amarante


  • Andrés Dean


  • Rodrigo Arím



Using unemployment insurance records and social security labor histories, we provide evidence of the impacts of recent changes in the unemployment insurance system of Uruguay. We estimate the effects on unemployment duration and post unemployment wages. Two main changes are considered: the modification in the scheme of payments —from a lump sum during six months to a decreasing system of payments during the same period— and extension in the duration of the benefit up to one year for workers 50 or older. We consider different impact evaluation techniques (propensity score, difference in differences and regression discontinuity), and find that the change in the payment scheme has implied a small reduction in unemployment duration, with no effects in terms of subsequent earnings. The possibility of extension of the unemployment insurance for older workers has led to an extension in unemployment duration and it has not helped to subsidize better job matches in the form of better paying jobs.

Suggested Citation

  • Verónica Amarante & Andrés Dean & Rodrigo Arím, 2013. "Unemployment Insurance Design and Its Effects: Evidence for Uruguay," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, June.
  • Handle: RePEc:col:000090:010964

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Lalive, Rafael, 2008. "How do extended benefits affect unemployment duration A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 785-806, February.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Andrés Dean & Estefanía Galván & Ivone Perazzo, 2014. "¿Acceden al subsidio por desempleo los asalariados rurales en Uruguay? Análisis de la situación actual y simulación de esquemas alternativos," Documentos de Trabajo (working papers) 14-22, Instituto de Economía - IECON.
    2. -, 2016. "Hacia un desarrollo inclusivo: el caso del Uruguay," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 40494 edited by Cepal, March.
    3. 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).
    4. Amarante, Verónica & Gómez, Marcela, 2016. "El proceso de formalización en el mercado laboral uruguayo," Estudios y Perspectivas – Oficina de la CEPAL en Montevideo 20, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. 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.
    6. Verónica Amarante & Andrés Dean, 2012. "Dinámica del mercado laboral uruguayo," Documentos de Trabajo (working papers) 12-17, Instituto de Economía - IECON.
    7. Amarante, Verónica & Arim, Rodrigo & Yapor, Mijail, 2015. "Desigualdad e informalidad en el Uruguay," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 39655, March.
    8. Gerard, Francois & Gonzaga, Gustavo, 2016. "Informal Labor and the Efficiency Cost of Social Programs: Evidence from the Brazilian Unemployment Insurance Program," CEPR Discussion Papers 11485, C.E.P.R. Discussion Papers.
    9. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.

    More about this item


    Unemployment insurance; impact evaluation.;

    JEL classification:

    • 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


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000090:010964. 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: (Universidad De Los Andes-Cede). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.