Unemployment Insurance Design and Its Effects: Evidence for Uruguay

Using unemployment insurance records and social security labor histories, we provide evidence of the impacts of recent changes in the unemployment insurance system of Uruguay. We estimate the effects on unemployment duration and post unemployment wages. Two main changes are considered: the modificat...

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Main Authors: Verónica Amarante, Andrés Dean, Rodrigo Arim
Format: Article
Language:English
Published: Universidad de los Andes (Bogotá) 2013-06-01
Series:Desarrollo y Sociedad
Subjects:
Online Access:http://economia.uniandes.edu.co/investigaciones_y_publicaciones/CEDE/Publicaciones/Revista_Desarrollo_y_Sociedad/Ediciones/Revista_Desarrollo_y_Sociedad_No._71/Unemployment_Insurance_Design_and_Its_Effects_Evidence_for_Uruguay
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author Verónica Amarante
Andrés Dean
Rodrigo Arim
author_facet Verónica Amarante
Andrés Dean
Rodrigo Arim
author_sort Verónica Amarante
collection DOAJ
description Using unemployment insurance records and social security labor histories, we provide evidence of the impacts of recent changes in the unemployment insurance system of Uruguay. We estimate the effects on unemployment duration and post unemployment wages. Two main changes are considered: the modification in the scheme of payments —from a lump sum during six months to a decreasing system of payments during the same period— and extension in the duration of the benefit up to one year for workers 50 or older. We consider different impact evaluation techniques (propensity score, difference in differences and regression discontinuity), and find that the change in the paymentscheme has implied a small reduction in unemployment duration, withno effects in terms of subsequent earnings. The possibility of extension of the unemployment insurance for older workers has led to an extension in unemployment duration and it has not helped to subsidize better job matches in the form of better paying jobs.
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spelling doaj.art-4ea7daaeac0d442bb433cfcc158a716c2022-12-22T01:31:01ZengUniversidad de los Andes (Bogotá)Desarrollo y Sociedad0120-35841900-77602013-06-0171174110.13043/DYS.71.1Unemployment Insurance Design and Its Effects: Evidence for UruguayVerónica AmaranteAndrés DeanRodrigo ArimUsing unemployment insurance records and social security labor histories, we provide evidence of the impacts of recent changes in the unemployment insurance system of Uruguay. We estimate the effects on unemployment duration and post unemployment wages. Two main changes are considered: the modification in the scheme of payments —from a lump sum during six months to a decreasing system of payments during the same period— and extension in the duration of the benefit up to one year for workers 50 or older. We consider different impact evaluation techniques (propensity score, difference in differences and regression discontinuity), and find that the change in the paymentscheme has implied a small reduction in unemployment duration, withno effects in terms of subsequent earnings. The possibility of extension of the unemployment insurance for older workers has led to an extension in unemployment duration and it has not helped to subsidize better job matches in the form of better paying jobs.http://economia.uniandes.edu.co/investigaciones_y_publicaciones/CEDE/Publicaciones/Revista_Desarrollo_y_Sociedad/Ediciones/Revista_Desarrollo_y_Sociedad_No._71/Unemployment_Insurance_Design_and_Its_Effects_Evidence_for_UruguayUnemployment insuranceimpact evaluation.
spellingShingle Verónica Amarante
Andrés Dean
Rodrigo Arim
Unemployment Insurance Design and Its Effects: Evidence for Uruguay
Desarrollo y Sociedad
Unemployment insurance
impact evaluation.
title Unemployment Insurance Design and Its Effects: Evidence for Uruguay
title_full Unemployment Insurance Design and Its Effects: Evidence for Uruguay
title_fullStr Unemployment Insurance Design and Its Effects: Evidence for Uruguay
title_full_unstemmed Unemployment Insurance Design and Its Effects: Evidence for Uruguay
title_short Unemployment Insurance Design and Its Effects: Evidence for Uruguay
title_sort unemployment insurance design and its effects evidence for uruguay
topic Unemployment insurance
impact evaluation.
url http://economia.uniandes.edu.co/investigaciones_y_publicaciones/CEDE/Publicaciones/Revista_Desarrollo_y_Sociedad/Ediciones/Revista_Desarrollo_y_Sociedad_No._71/Unemployment_Insurance_Design_and_Its_Effects_Evidence_for_Uruguay
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