Introducing unemployment insurance to developing countries

The paper analyzes key labor market and institutional features of developing countries that affect functioning of unemployment insurance: a large informal sector, weak administrative capacity, and large political risk. It argues that these countries should tailor an OECD-style unemployment insurance program to their circumstances, among others by relying on self-insurance (via unemployment insurance savings accounts), complemented by solidarity funding, as a key source of financing; by simplifying monitoring of job-search behavior and labor market status; and by piggybacking on existing networks to administer benefits. The paper also addresses the question whether developing countries should introduce unemployment insurance.JEL codesJ65, J68

• Publication year

  2013

• Venue

  IZA Journal of Labor Policy

• Publication date

  2013-02-18

• Fields of study

  Economics, Political Science

• Identifiers
  DOI 10.1186/2193-9004-2-1
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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