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Expanding Social Insurance Coverage to Informal Workers

Author

Listed:
  • Elizabeth Ruppert Bulmer
  • Hernan Winkler
  • Hilma Mote

Abstract

The high incidence of informality in developing countries implies that many workers are not covered against important risks, such as unemployment, illness and old-age poverty. Given that expanding the Bismarckian system to include informal workers presents many challenges, several countries implemented non-contributory social insurance programs to expand coverage. However, these contributed to labor market segmentation and are unlikely to be financially sustainable. This note reviews the economic literature dealing with the expansion of social insurance programs and summarizes the main policy insights. It draws on international evidence on social insurance system design and innovations, and the resulting impact on coverage. It also provides general design principles that can apply to unemployment benefits, health insurance, and pensions.
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Suggested Citation

  • Elizabeth Ruppert Bulmer & Hernan Winkler & Hilma Mote, 2017. "Expanding Social Insurance Coverage to Informal Workers," World Bank Publications - Reports 27932, The World Bank Group.
    • Handle: RePEc:wbk:wboper:27932
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    References listed on IDEAS

    as
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    3. Dohyung Kim, 2025. "Do social insurance contribution subsidies reduce undeclared work? Evidence from South Korea," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 32(6), pages 1934-1959, December.
    4. Roosa Lambin & Milla Nyyssölä, 2022. "Two decades of Tanzanian health policy: Examining policy developments and opportunities through a gender lens," WIDER Working Paper Series wp-2022-30, World Institute for Development Economic Research (UNU-WIDER).
    5. Lucas Sato & Camila Rolon & Beatriz Burattini & Victor Thives & Louisa Wagner & Arniela Rénique & Mauricio Mireles, 2022. "Respuesta de protección social al COVID-19 en el ámbito rural de América Latina y el Caribe: Protección y promoción del empleo en el sector agrario," Policy Research Brief 83, International Policy Centre.
    6. World Bank, 2021. "Enhancing Resilience of Low Income Workers in Brazil," World Bank Publications - Reports 36463, The World Bank Group.
    7. Lucas Sato & Camila Rolon & Beatriz Burattini & Victor Thives & Louisa Wagner & Arniela Rénique & Mauricio Mireles, 2022. "Social protection response to COVID-19 in rural LAC: Protection and promotion of employment in the agricultural sector," Policy Research Brief 83, International Policy Centre.

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