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Unemployment insurance for the self-employed: a way forward post-corona

Author

Listed:
  • Schoukens, Paul

    (European Institute of Social Security (EISS) ; University KU Leuven)

  • Weber, Enzo

    (Institute for Employment Research (IAB), Nuremberg, Germany ; University of Regensburg)

Abstract

"With the COVID-19 crisis as background, the underlying paper elaborates on setting up an unemployment insurance for self-employed. While a comprehensive approach would have clear advantages, it is crucial to adapt the rules of existing insurances for wage earners appropriately addressing the specific needs of self-employed. Therefore, we discuss key rules and conditions with regard to self-employed and derive conclusions on how unemployment insurance for them should be designed. In this, we investigate the key elements of such an insurance. When it comes to financing the unemployment scheme, we discuss how an income related contribution levied on the running income of the self-employed person could be organised. With regard to entitlement, we argue for a detailed conditioning and monitoring of the closing down of the business rather than focusing upon the involuntary character. Before the background of surging short-time work in the COVID-19 crisis, we reason that a short-time work parallel for self-employed is possible to organise in order to handle exceptional events but would have to be designed with sufficient restrictions. In order to avoid false incentives for excessive repeated use of unemployment benefits, we propose a certain experience rating that is less abrupt than existing re-eligibility criteria and thus still provides continuous protection. Regarding labour market availability, we recommend to balance swift labour market integration and productive matching of entrepreneurial persons into self-employment by criteria giving leeway to self-employed activities as far as possible, but over time also guaranteeing an effective labour market integration. For dealing with the combination of multiple jobs and activities, we provide some guiding principles how to organise an unemployment insurance including entitlement and contributions in an integrated manner around activities, based on total work-related income." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Schoukens, Paul & Weber, Enzo, 2020. "Unemployment insurance for the self-employed: a way forward post-corona," IAB-Discussion Paper 202032, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202032
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    References listed on IDEAS

    as
    1. Youssef Benzarti & Jarkko Harju & Tuomas Matikka, 2020. "Does Mandating Social Insurance Affect Entrepreneurial Activity?," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 255-268, June.
    2. Weber, Enzo, 2019. "Digital Social Security: Outline of a concept for the 21st century," Working Paper Forschungsförderung 138, Hans-Böckler-Stiftung, Düsseldorf.
    3. Mette Ejrnæs & Stefan Hochguertel, 2013. "Is Business Failure Due to Lack of Effort? Empirical Evidence from a Large Administrative Sample," Economic Journal, Royal Economic Society, vol. 123, pages 791-830, September.
    4. Weber, Enzo., 2018. "Setting out for Digital Social Security," ILO Working Papers 995008793202676, International Labour Organization.
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    Cited by:

    1. Kai Biehl & Franziska Disslbacher & Michael Ertl & Georg Feigl & Julia Hofmann & Markus Marterbauer & Patrick Mokre & Reinhold Russinger & Matthias Schnetzer & Jana Schultheiss & Tobias Schweitzer & T, 2020. "Der österreichische Sozialstaat in der Covid-19-Krise," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 46(4), pages 487-500.
    2. Bonin, Holger & Eichhorst, Werner & Krause-Pilatus, Annabelle & Rinne, Ulf, 2021. "Wirtschaftliche Auswirkungen der Corona-Pandemie auf private Haushalte," IZA Research Reports 112, Institute of Labor Economics (IZA).
    3. Gartner, Hermann & Hutter, Christian & Weber, Enzo, 2021. "Große Rezession und Corona-Krise: Wie der Arbeitsmarkt zwei sehr unterschiedliche Krisen bewältigt (Great Recession and Corona crisis: How the labour market copes with two different crises)," IAB-Kurzbericht 202127, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Pandemie ; Auswirkungen ; Finanzierung ; Konzeption ; Leistungsanspruch ; Anspruchsvoraussetzung ; Selbständige ; Soziale Sicherheit ; Arbeitslosengeld ; Arbeitslosenversicherung ; Versicherungspflicht;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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