EconStor >
Research Institute of the Finnish Economy (ETLA), Helsinki >
ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/44501
  
Title:Unemployment insurance savings accounts: An overview PDF Logo
Authors:Valentini, Francesca
Issue Date:2008
Series/Report no.:ETLA discussion paper 1136
Abstract:Unemployment insurance and job protection regulations provide assistance to those who face unemployment. Unemployment insurance seems more desirable, since it does not harm flexibility in the labour markets, but it entails a moral hazard risk. Making the unemployment insurance voluntary and private would create more problems related mostly to the nature of the unemployment risk and to asymmetric information. Instead, it would sound more desirable to improve the design of unemployment insurance in a way that it would protect the individuals without harming flexibility and incentives for job seekers and job owners. Against this background, Unemployment Insurance Savings Accounts (UISA) have been proposed by a number of scholars. This paper provides a literature review of the theoretical properties of the UISA and analyses the current experience of Chile. It then investigates the similarities and differences between this UISA system and the severance payment savings account reforms recently implemented in Austria and Colombia. In light of both the theoretical and the practical perspectives, the UISA seem a valuable option, since they provide insurance without excessively harming the incentives of the individuals, offering security without impeding the flexibility in the labour markets.
Subjects:unemployment insurance
savings accounts
UISA
Chile
severance pay reform
funded scheme
JEL:H53
H55
I38
J65
J68
Document Type:Working Paper
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA)

Files in This Item:
File Description SizeFormat
566469944.pdf246.75 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/44501

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.