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China : improving unemployment insurance

  • Vodopivec, Milan
  • Tong, Minna Hahn

The objective of this policy note is to assist the Chinese government in assessing implementation of the unemployment insurance (UI) program to date, identifying key challenges, and exploring possible policy responses. The note begins with a background section on recent developments in the country's economy and labor market and briefly describes the evolution of the UI program within this context. The note then provides an overview and analysis of the current UI program, touching upon critical issues such as coverage, benefit levels, effects on work incentives, provision of employment services, and financial performance. For this analysis, the note draws upon results from recent UI policy simulation pilots in Qingdao and Tianjin; lessons from a World Bank-supported UI technical assistance project in Liaoning province; interviews with government officials involved in UI; and various UI-related studies and project reports. The note concludes with policy recommendations and suggests some future directions for UI system reform.

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Paper provided by The World Bank in its series Social Protection Discussion Papers with number 44779.

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Date of creation: 01 Jul 2008
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Handle: RePEc:wbk:hdnspu:44779
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  1. Jan C. van Ours & Milan Vodopivec, 2006. "How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 351-378, April.
  2. Milan Vodopivec & Andreas W�rg�tter & Dhushyanth Raju, 2005. "Unemployment Benefit Systems in Central and Eastern Europe: A Review of the 1990s1," Comparative Economic Studies, Palgrave Macmillan, vol. 47(4), pages 615-651, December.
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