scholarly journals Informal Labor and the Efficiency Cost of Social Programs: Evidence from the Brazilian Unemployment Insurance Program

2016 ◽  
Author(s):  
François Gerard ◽  
Gustavo Gonzaga
Keyword(s):  
Unemployment Insurance ◽  
Social Programs ◽  
Informal Labor ◽  
Insurance Program ◽  
Efficiency Cost

Informal Labor and the Efficiency Cost of Social Programs: Evidence from Unemployment Insurance in Brazil

2021 ◽  
Vol 13 (3) ◽  
pp. 167-206
Author(s):  
François Gerard ◽  
Gustavo Gonzaga
Keyword(s):  
United States ◽  
Moral Hazard ◽  
Labor Markets ◽  
Unemployment Insurance ◽  
The United States ◽  
Social Programs ◽  
Informal Labor ◽  
Experimental Variation ◽  
Efficiency Cost ◽  
Quasi Experimental

It is widely believed that the presence of a large informal sector increases the efficiency cost of social programs in developing countries. We evaluate such claims for the case of unemployment insurance (UI) by combining an optimal UI framework with comprehensive data from Brazil. Using quasi-experimental variation in potential UI duration, we find clear evidence for the usual moral hazard problem that UI reduces incentives to return to a formal job. Yet, the associated efficiency cost is lower than it is in the United States, and it is lower in labor markets with higher informality within Brazil. This is because formal reemployment rates are lower to begin with where informality is higher, so that a larger share of workers would draw UI benefits absent any moral hazard. In sum, efficiency concerns may actually become more relevant as an economy formalizes. (JEL J65, O15, O17, E26, D82, J46)

scholarly journals Distributive Consequences of Risk Privatization: The Case of the Swedish Unemployment Insurance System

2020 ◽  
Vol 66 (3) ◽  
pp. 207-235
Author(s):  
Jayeon Lindellee
Keyword(s):  
Unemployment Insurance ◽  
Unemployment Benefit ◽  
Income Loss ◽  
The Public ◽  
Insurance Benefit ◽  
Insurance Program ◽  
Unemployment Insurance Benefit ◽  
Income Insurance ◽  
Unemployment Insurance System ◽  
Retail Workers

Abstract The public unemployment insurance program in Sweden has retrenched in terms of its benefit generosity in the last three decades. As a response to this trend, in which an ever-smaller proportion of the previous income of unemployed persons is compensated by public unemployment insurance benefit, complementary income insurance schemes provided by unions have expanded rapidly in the last 15 years, currently covering one half of the working population. What does this change mean for people who need income protection upon unemployment and are more likely to find themselves unemployed or underemployed? By analyzing survey-based benefit recipiency data among retail workers who were unemployed in 2014, this article explores the outcomes of the multi-pillarized unemployment benefit provision system in Sweden. While public unemployment insurance benefit does not fully compensate for the income loss for the majority of retail workers, the promise of a complementary income insurance scheme seems to be illusory for many individuals as they repeatedly oscillate between precarious work and benefits, accompanied by the burden of navigating a complex system.

scholarly journals A Development on a Predictive Model for Buying Unemployment Insurance Program Based on Public Data

2017 ◽  
Vol 2 (2) ◽  
pp. 17-31
Author(s):  
조민수 ◽  
Kidae Kim ◽  
Kwangyong Kim ◽  
Chungsik Jeong ◽  
DOHYEON KIM ◽  
...  
Keyword(s):  
Predictive Model ◽  
Unemployment Insurance ◽  
Insurance Program ◽  
Public Data
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