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Labor Markets and Income Support: What Did We Learn from the Crises?

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  • Gustavo Márquez

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Abstract

The adoption of emergency employment and short-term training programs to provide income support to the population affected by the episodes of economic volatility since 1995 reveals the failure of the traditional, labor law-based income support mechanisms in the region. These emergency programs are not additional and transitory, but rather have become a permanent component of social policies. As such, they present policymakers with the opportunity to build a more encompassing and better designed mechanism to protect workers against the effects of macroeconomic volatility. The paper argues for an income support system centered on unemployment insurance, complemented with additional mechanisms to provide effective income support to workers during normal times; the paper also discusses what changes are necessary in emergency programs to make them work as part of that system.

Suggested Citation

  • Gustavo Márquez, 2000. "Labor Markets and Income Support: What Did We Learn from the Crises?," Research Department Publications 4219, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4219
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    References listed on IDEAS

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    1. Eduardo Lora & Gustavo Márquez, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," Research Department Publications 4114, Inter-American Development Bank, Research Department.
    2. Eduardo Lora & Mauricio Olivera, 1998. "Macro Policy and Employment Problems in Latin America," IDB Publications (Working Papers) 6077, Inter-American Development Bank.
    3. Hopenhayn, Hugo A & Nicolini, Juan Pablo, 1997. "Optimal Unemployment Insurance," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 412-438, April.
    4. Eduardo Lora & Carmen Pagés-Serra, 1997. "La legislación laboral en el proceso de reformas estructurales de América Latina y el Caribe," Research Department Publications 4065, Inter-American Development Bank, Research Department.
    5. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-1142, December.
    6. repec:idb:wpaper:371 is not listed on IDEAS
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