Optimal Unemployment Insurance

Optimal Unemployment Insurance

Author: Andreas Pollak

Publisher: Mohr Siebeck

Published: 2007

Total Pages: 204

ISBN-13: 9783161493041

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Designing a good unemployment insurance scheme is a delicate matter. In a system with no or little insurance, households may be subject to a high income risk, whereas excessively generous unemployment insurance systems are known to lead to high unemployment rates and are costly both from a fiscal perspective and for society as a whole. Andreas Pollak investigates what an optimal unemployment insurance system would look like, i.e. a system that constitutes the best possible compromise between income security and incentives to work. Using theoretical economic models and complex numerical simulations, he studies the effects of benefit levels and payment durations on unemployment and welfare. As the models allow for considerable heterogeneity of households, including a history-dependent labor productivity, it is possible to analyze how certain policies affect individuals in a specific age, wealth or skill group. The most important aspect of an unemployment insurance system turns out to be the benefits paid to the long-term unemployed. If this parameter is chosen too high, a large number of households may get caught in a long spell of unemployment with little chance of finding work again. Based on the predictions in these models, the so-called "Hartz IV" labor market reform recently adopted in Germany should have highly favorable effects on the unemployment rates and welfare in the long run.


Duration of Unemployment Benefits and Quality of Post-unemployment Jobs

Duration of Unemployment Benefits and Quality of Post-unemployment Jobs

Author: Jan C. van Ours

Publisher: World Bank Publications

Published: 2006

Total Pages: 33

ISBN-13:

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This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs. It takes advantage of a natural experiment introduced by a change in Slovenia's unemployment insurance law that substantially reduced the potential benefit duration. Although this reduction strongly increased job finding rates, the quality of the post-unemployment jobs remained unaffected. The paper finds that the law change had no effect on the type of contract (temporary versus permanent), the duration of the post-unemployment job, or the wage earned in the job.


The Social Security Disability Program

The Social Security Disability Program

Author: Richard Thomas Smith

Publisher:

Published: 1971

Total Pages: 314

ISBN-13:

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The purpose of this study is to examine the post-evaluation experience of a group of applicants denied disability benefits (cases) and to contrast their experience with a group of applicants allowed benefits (controls). It includes an analysis of the current medical, vocational, and socioeconomic status of the two groups of disability applicants. The findings will provide some objective measure of the efficacy and accuracy of the guides used in benefit determinations. The specific objectives of the study are: (1) to assess the effectiveness with which the guides measure severity of disability, by analyzing survivorship experience of the two applicant groups; (2) to assess the accuracy of the guides in measuring severity of disability and inability to work, by evaluating illness, impairment, and functional limitation characteristics of allowed and denied applicants; (3) to evaluate the measure of "ability to engage in gainful employment," by analyzing work experience and occupational changes of applicants; (4) to assess the influence of disability determinations on applicants' subsequent levels of income and economic resources; and (5) to examine the pattern of medical and rehabilitation services utilized by applicants, as a reflection of the guides used to measure severity of disability. The study was conducted during the period of March 1964 through September 1966, in Baltimore. All aspects of the investigation carried out by an independent research team are covered herein. The findings of the present study thus serve two major purposes: an evaluation of the disability program on a limited scale, and a design and replication model for carrying out further studies.


Modelling Unemployment Insurance

Modelling Unemployment Insurance

Author: Paola Potestio

Publisher: Springer Nature

Published: 2022-01-28

Total Pages: 182

ISBN-13: 3030913198

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This book examines unemployment insurance policy through a survey, taking stock of the theoretical work in the field of labor economics. It closely follows and assesses developments in the modelling of optimal unemployment insurance (UI) policies, beginning with the initial analytical findings produced in the second half of the 1970s. A main part of the survey is devoted to the two basic strands of analysis about, respectively, the optimal level of UI benefits and the optimal time profile of UI policy. The book has two different objectives. The first is to provide an essential summary of the individual models, with the intention of underscoring how a number of specific messages for the policy-maker can be derived from analytical constructions. It further emphasizes and comments on what the models deliver to UI policy-makers. The second objective is to stress the importance and extension of open questions in the field of the theoretical approach to the unemployment insurance issue. The survey discusses the multiplicity of heterogeneities of the labor world in particular as relevant for UI issues on the one side, and on the other hand, the independence of the two basic choices of UI policy, its meaning and its limits, and the possible forms of complementarity between these choices. The book is a must-read for researchers, students, and policy-makers interested in a better understanding of the field of labor economics in general, as well as unemployment insurance policies in particular.