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Unemployment Insurance in Chile: Does it Stabilize the Business Cycle?

Author

Listed:
  • Rodrigo Cerda
  • Rodrigo Vergara

    () (Studies Division, Chilean Pension Supervisor)

Abstract

En este artículo exploramos los efectos del seguro de cesantía en Chile. Un modelo de equilibrio es calibrado para la economía chilena para el periodo 1960-2000. Suponemos una economía sujeta a shocks tecnológicos exógenos con una fracción de la población sujeta a restricciones de liquidez. Nuestra principal conclusión es que el seguro de cesantía tiene un cierto efecto estabilizador del ciclo económico, especialmente sobre el consumo, pero este es un efecto de segundo orden de magnitud. También encontramos que mientras más grande sea la fracción de la población sujeta a restricciones de liquidez, más probable es que el programa sea beneficioso en términos de bienestar. Nuestros resultados sugieren que el objetivo de estabilizar el ciclo económico podría ser alcanzado más eficientemente utilizando instrumentos alternativos..

Suggested Citation

  • Rodrigo Cerda & Rodrigo Vergara, 2006. "Unemployment Insurance in Chile: Does it Stabilize the Business Cycle?," Working Papers 17, Superintendencia de Pensiones, revised May 2007.
  • Handle: RePEc:sdp:sdpwps:17
    as

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    File URL: http://www.spensiones.cl/redirect/files/doctrab/DT00017.pdf
    File Function: Revised version, 2007
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    References listed on IDEAS

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    3. Imrohoruglu, Ayse, 1989. "Cost of Business Cycles with Indivisibilities and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1364-1383, December.
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    5. Beaudry, Paul & Pages, Carmen, 2001. "The cost of business cycles and the stabilization value of unemployment insurance," European Economic Review, Elsevier, vol. 45(8), pages 1545-1572, August.
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    Cited by:

    1. Rodrigo Cerda & Fernando Coloma, 2009. "Estudio Actuarial de los Fondos de Cesantía 2008," Working Papers 33, Superintendencia de Pensiones, revised Sep 2009.
    2. Solange Berstein & Eduardo Fajnzylber & Pamela Gana & Isabel Poblete, 2007. "Cinco Años de Funcionamiento del Seguro de Cesantía en Chile," Working Papers 23, Superintendencia de Pensiones, revised Dec 2007.

    More about this item

    Keywords

    unemployment insurance; business cycle;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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