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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.
The importance of non-standard employment forms has increased over the last decades. Janine Leschke addresses two important questions in this regard. First, do workers with part-time and temporary contracts face greater risks of becoming unemployed than those with regular contracts? Secondly, how far are they disadvantaged in terms of access to and level of unemployment benefits? The author compares the design of unemployment benefit systems in Denmark, Germany, Spain, and the United Kingdom. After discussing the development and role of non-standard employment in these countries, she examines the relevant features of unemployment insurance systems such as hours and earning thresholds and minimum contribution requirements. Her empirical analysis shows that non-standard workers are more likely to become unemployed or inactive and are disadvantaged in their entitlements to unemployment benefits.
As labour markets become more flexible, employment security is negativelyaffected. Protected formal employment has fallen, and various kinds of non-standardemployment have emerged. This paper explores some conceptual and related empiricalissues surrounding employment security in the light of recent developments in thelabour market. It takes into account subjective and objective elements of employmentsecurity, and differentiates between contractual, behavioural and governance indicatorsat the national, enterprise and individual levels.
This paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies. This note reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies. The focus is mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency: employment protection, unemployment insurance and social assistance, minimum wages and collective bargaining. Text mining techniques are used to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016. This note has provided a critical review of the literature on the design of labor market institutions in emerging and developing market economies, and benchmarked the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.
An indispensable investigation into the American unemployment system and the ways gender and class affect the lives of those looking for work Through the intimate stories of those seeking work, The Tolls of Uncertainty offers a startling look at the nation’s unemployment system—who it helps, who it hurts, and what, if anything, we can do to make it fair. Drawing on interviews with one hundred men and women who have lost jobs across Pennsylvania, Sarah Damaske examines the ways unemployment shapes families, finances, health, and the job hunt. Damaske demonstrates that commonly held views of unemployment are either incomplete or just plain wrong. Shaped by a person’s gender and class, unemployment generates new inequalities that cast uncertainties on the search for work and on life chances beyond the world of work, threatening opportunity in America. Following in depth the lives of four individuals over the course of their unemployment experiences, Damaske offers insights into how the unemployed perceive their relationship to work. She reveals the high levels of blame that women who have lost jobs place on themselves, leading them to put their families’ needs above their own, sacrifice their health, and take on more tasks inside the home. This “guilt gap” illustrates how unemployment all too often exacerbates existing differences between men and women. Class privilege, too, gives some an advantage, while leaving others at the mercy of an underfunded unemployment system. Middle-class men are generally able to create the time and space to search for good work, but many others are bogged down by the challenges of poverty-level unemployment benefits and family pressures and fall further behind. Timely and engaging, The Tolls of Uncertainty posits that a new path must be taken if the nation’s unemployed are to find real relief.
Describes the informal economy and highlights its decent work deficit. Proposes an integrated strategy to address underlying causes of informality and to promote decent work in all sectors of the economy, from formal to informal.
Expansion of non-standard employment under globalization is widely observed in all of the newly industrializing countries. This book explores the deregulation of labour markets, social protection for nonstandard workers, and social security reforms in accordance with the transformation of employment.
Published in 1999, this text is influenced by two sets of theories, namely regulation theories and theories on social citizenship. Regulation theories are mainly used as an overall guideline - a frame of reference - in the analysis of changed, unchanged and new types of integration and differentiation in working life and its social modes of regulations. The perspective on social citizenship is concentrated on participation in working life - what are the changes in working life (unemployment and non-standard employment) and what are the conditions and the outcome of social regulation? These questions are thematized in two articles and analyzed in chapter 7 which focuses on four welfare state models represented by Portugal, England, the Netherlands and Denmark. The book aims to contribute material on labour market segmentation and social policies to combat labour market marginalization in four countries studies representing typical European welfare state models.