Unemployment Insurance Savings Accounts: An Overview
Unemployment insurance and job protection regulations provide assistance to those who face unemployment. Unemployment insurance seems more desirable, since it does not harm flexibility in the labour markets, but it entails a moral hazard risk. Making the unemployment insurance voluntary and private would create more problems related mostly to the nature of the unemployment risk and to asymmetric information. Instead, it would sound more desirable to improve the design of unemployment insurance in a way that it would protect the individuals without harming flexibility and incentives for job seekers and job owners. Against this background, Unemployment Insurance Savings Accounts (UISA) have been proposed by a number of scholars. This paper provides a literature review of the theoretical properties of the UISA and analyses the current experience of Chile. It then investigates the similarities and differences between this UISA system and the severance payment savings account reforms recently implemented in Austria and Colombia. In light of both the theoretical and the practical perspectives, the UISA seem a valuable option, since they provide insurance without excessively harming the incentives of the individuals, offering security without impeding the flexibility in the labour markets.
|Date of creation:||2008|
|Contact details of provider:|| Postal: Lönnrotinkatu 4 B, FIN-00120 HELSINKI|
Phone: +358 (0)9 609 900
Fax: +358 (0)9 601 753
Web page: http://www.etla.fi/
More information through EDIRC
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:rif:dpaper:1136. 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: (Kaija Hyvönen-Rajecki)
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.