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

  • Gustavo Márquez

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    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.

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    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=WP-425&pub_file_name=pubWP-425.pdf
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    Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4219.

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    Date of creation: Jun 2000
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    Handle: RePEc:idb:wpaper:4219
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    1. Hopenhayn, H. & Nicolini, P.J., 1996. "Optimal Unemployment Insurance," RCER Working Papers 421, University of Rochester - Center for Economic Research (RCER).
    2. Eduardo Lora & Mauricio Olivera, 1998. "Macro Policy and Employment Problems in Latin America," Research Department Publications 4116, Inter-American Development Bank, Research Department.
    3. 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.
    4. Eduardo Lora & Carmen Pagés-Serra, 1997. "La legislación laboral en el proceso de reformas estructurales de América Latina y el Caribe," IDB Publications (Working Papers) 7625, Inter-American Development Bank.
    5. John Ham & Jan Svejnar & Katherine Terrell, 1998. "Unemployment and the Social Safety Net During Transitions to a Market Economy: Evidence from the Czech and Slovak Republic," William Davidson Institute Working Papers Series 169, William Davidson Institute at the University of Michigan.
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