Unemployment accounts and employment incentives
We explore the far-reaching implications of replacing current unemployment benefit (UB) systems by an unemployment accounts (UAs) system. Under the UAs system, employed people are required to make ongoing contributions to their UAs and the balances in these accounts are available to them during periods of unemployment. The government is able to undertake balanced-budget interpersonal redistributions among the UAs. At the end of their working lives, people could transfer the remaining balances on their UAs into their pensions. We present an analytical framework to analyse the incentive effects of UAs and calibrate our model for the high high-unemployment countries of Europe. Our results suggest that this policy reform would significantly change people's employment incentives and could achieve reductions in unemployment without reducing the level of support to the unemployed.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Robert Holzmann, 2005. "Reforming Severance Pay: Toward an Understanding of Program Rationale, Economic Impact and Reform Options," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(3), pages 251-253, 09.
- Lans Bovenberg & Peter Birch Sørensen, 2003.
"Improving the Equity-Efficiency Trade-off: Mandatory Savings Accounts for Social Insurance,"
CESifo Working Paper Series
1041, CESifo Group Munich.
- A. Lans Bovenberg & Peter Birch Sørensen, 2004. "Improving the Equity-Efficiency Trade-Off: Mandatory Savings Accounts for Social Insurance," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(4), pages 507-529, 08.
- A. Lans Bovenberg & Peter Birch Sørensen, "undated". "Improving the Equity-Efficiency Trade-Off: Mandatory Savings Accounts for Social Insurance," EPRU Working Paper Series 03-07, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Aug 2003.
- Joseph Stiglitz & Jungyoll Yun, 2002.
"Integration of Unemployment Insurance with Retirement Insurance,"
NBER Working Papers
9199, National Bureau of Economic Research, Inc.
- Stiglitz, Joseph E. & Yun, Jungyoll, 2005. "Integration of unemployment insurance with retirement insurance," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2037-2067, December.
- Alfred Boss & Alessio J. G. Brown & Dennis J. Snower, 2008.
"Beschäftigungskonten für Deutschland,"
Perspektiven der Wirtschaftspolitik,
Verein für Socialpolitik, vol. 9(2), pages 139-155, 05.
- Alfred Boss & Alessio J. G. Brown & Dennis Snower, 2007. "Beschäftigungskonten für Deutschland," Kiel Working Papers 1325, Kiel Institute for the World Economy.
- Boss, Alfred & Brown, Alessio J. G. & Snower, Dennis J., 2007. "Beschäftigungskonten für Deutschland," Kiel Working Papers 1325, Kiel Institute for the World Economy (IfW).
- Boss, Alfred & Brown, Alessio J. G. & Snower, Dennis J., 2007. "Beschäftigungskonten für Deutschland," Kiel Working Papers 1325 [rev.], Kiel Institute for the World Economy (IfW).
- Shiller, Robert J., 2006. "Life-cycle personal accounts proposal for Social Security: An evaluation of President Bush's proposal," Journal of Policy Modeling, Elsevier, vol. 28(4), pages 427-444, May.
- Jude H. Esguerra & Mokoto Ogawa & Milan Vodopivec, 2001. "Income Support for the Unemployed : Options for the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 38(2), pages 37-66, December.
- Chia, Ngee Choon & Tsui, Albert K. C., 2003. "Life annuities of compulsory savings and income adequacy of the elderly in Singapore," Journal of Pension Economics and Finance, Cambridge University Press, vol. 2(01), pages 41-65, March.
- Feldstein, Martin & Altman, Dan, 2007. "Unemployment Insurance Savings Accounts," Scholarly Articles 2960185, Harvard University Department of Economics.
- Adriana D. Kugler, 1999.
"The impact of firing costs on turnover and unemployment: Evidence from the Colombian labour market reform,"
Economics Working Papers
388, Department of Economics and Business, Universitat Pompeu Fabra.
- Adriana Kugler, 1999. "The Impact of Firing Costs on Turnover and Unemployment: Evidence from the Colombian Labour Market Reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 389-410, August.
- Milan Vodopivec, 2006. "Choosing a System of Unemployment Income Support: Guidelines for Developing and Transition Countries," World Bank Research Observer, World Bank Group, vol. 21(1), pages 49-89.
- Kock, Udo & Butter, A.G. den, 2001. "Can individual unemployment savings accounts resolve Okun's equity-efficiency trade-off?," Serie Research Memoranda 0026, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Peter AUER & Janine BERG & Ibrahim COULIBALY, 2005. "Is a stable workforce good for productivity?," International Labour Review, International Labour Organization, vol. 144(3), pages 319-343, 09.
- Orszag, Mike & Snower, Dennis J., 1997. "Expanding the Welfare System: A Proposal for Reform," CEPR Discussion Papers 1674, C.E.P.R. Discussion Papers.
- J. Michael Orszag & Dennis J. Shower, 2000. "The Effectiveness of Employment Vouchers: A Simple Approach," German Economic Review, Verein für Socialpolitik, vol. 1(4), pages 385-419, November.
- Adriana Kugler, 2004.
"Wage-Shifting Effects of Severance Payments Savings Accounts in Colombia,"
132, Barcelona Graduate School of Economics.
- Kugler, Adriana D., 2005. "Wage-shifting effects of severance payments savings accounts in Colombia," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 487-500, February.
- Miguel Jaramillo & Jaime Saavedra, 2005. "Severance Payment Programs in Latin America," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(3), pages 275-307, 09.
- Martin Feldstein & Daniel Altman, 2007.
"Unemployment Insurance Savings Accounts,"
in: Tax Policy and the Economy, Volume 21, pages 35-64
National Bureau of Economic Research, Inc.
- Goerke, Laszlo, 2007. "Unemployment Insurance Savings Accounts and Collective Wage Determination," IZA Discussion Papers 3141, Institute for the Study of Labor (IZA).
- Edi Karni, 1999. "Optimal Unemployment Insurance: A Survey," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 442-465, October.
- Stefan Fölster & Robert Gidehag & Mike Orszag & Dennis J. Snower, 2003. "Health Accounts and Other Welfare Accounts," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(3), pages 09-14, October.
- Orszag, Jonathan Michael & Snower, Dennis J., 2000. "The effectiveness of employment vouchers: a simple approach," Open Access Publications from Kiel Institute for the World Economy 2519, Kiel Institute for the World Economy (IfW).
- Folster, Stefan, 1999. "Social Insurance Based on Personal Savings," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 5-18, March.
- Esguerra, Jude H. & Ogawa, Makoto & Vodopivec, Milan, 2002. "Options of public income support for the unemployed in the Philippines and social protection," Social Protection and Labor Policy and Technical Notes 25509, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:24:y:2008:i:3:p:587-604. 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: (Shamier, Wendy)
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.