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http://hdl.handle.net/10419/3848
  
Title:Unemployment accounts and employment incentives PDF Logo
Authors:Brown, Alessio J. G.
Orszag, Jonathan Michael
Snower, Dennis J.
Issue Date:2006
Series/Report no.:CEPR Discussion Paper Series, Centre for Economic Policy Research (CEPR), London 5692
Abstract:We explore the far-reaching implications of replacing current unemployment benefit (UB) systems by an unemployment accounts (UA) system. Under the UA system, employed people are required to make ongoing contributions to their UAs and the balances in these accounts are available to them during periods of unemployment. The government is able to undertake balancedbudget interpersonal redistributions among the UAs. At the end of their working lives, people could transfer the remaining balances on their UAs into their pensions. We present an analytical framework to analyse the incentive effects of UAs and calibrate our model for the high unemployment countries of Europe. Our results suggest that this policy reform would significantly change people's employment incentives and could achieve reductions in unemployment without reducing the level of support to the unemployed.
JEL:I38
J22
J32
J38
J64
J65
J68
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW

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