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Unemployment insurance : severance payments and informality in developing countries

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dc.creatorBardey, David
dc.creatorJaramillo Mejía, Fernando
dc.date.accessioned2015-09-18T14:58:28Z
dc.date.available2015-09-18T14:58:28Z
dc.date.created2011
dc.date.issued2011
dc.description.abstractWe analyze whether the introduction or an increase of unemployment insurance (UI hereafter) beneÖts in developing countries reduces the e§ort made by unemployed workers to secure a new job in the formal sector. We adopt a comparative static approach and we consider the consequences of an increase of current UI beneÖts on unemployed workersídecision variables in this same period, i.e. we focus on an intra-temporal trade-o§, allowing us to assume away moral hazard complications. When there is no informal sector, unemployed workers may devote their time between e§ort to secure a new job in the formal sector and leisure. In the presence of an informal sector, unemployed workers may also devote time to remunerated informal activities. Consequently, the amount of e§ort devoted to secure a new (formal) job generates an opportunity cost, which ceteris paribus, reduces the amount of time devoted to remunerated activities in the informal sector. We show that in the presence of an informal sector, an increase of current UI beneÖts decreases this marginal opportunity cost and therefore unambiguously increases the e§ort undertaken to secure a new job in the formal sector. This intra-temporal e§ect is the only one at play in presence of one-shot UI beneÖts or with severance payments mechanism.eng
dc.format.extent8 páginasspa
dc.format.mediumRecurso electrónicospa
dc.format.mimetypeapplication/pdf
dc.format.tipoDocumentospa
dc.identifier.citationBardey, D., & Jaramillo, F. (2011). Unemployment insurance : severance payments and informality in developing countries. Bogotá: Universidad del Rosario.
dc.identifier.doihttps://doi.org/10.48713/10336_10824
dc.identifier.editorialUniversidad del Rosariospa
dc.identifier.urihttp://repository.urosario.edu.co/handle/10336/10824
dc.language.isospa
dc.publisherUniversidad del Rosariospa
dc.publisher.departmentFacultad de Economíaspa
dc.relation.citationIssueNo. 111
dc.relation.citationTitleSerie Documentos de trabajo. Economía
dc.relation.ispartofSerie documentos de trabajo. No 111 (Octubre 2011)spa
dc.relation.urihttps://ideas.repec.org/p/col/000092/009015.html
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto completo)spa
dc.rights.ccAtribución-NoComercial-SinDerivadas 2.5 Colombiaspa
dc.source.bibliographicCitation£lvarez-Parra F. and J-M. S·nchez, 2009, "Unemployment insurance with a hidden labor market", Journal of Monetary Economics, vol. 56(7), pages 954-967.
dc.source.bibliographicCitationCahuc P. and E. Lehman, 2000, "Should unemployment beneÖts decrease with unemployment spell ?", Journal of Public Economics, vol 77, pages 135-53.
dc.source.bibliographicCitationChetty R., 2008, "Moral Hazard vs. Liquidity and Optimal Unemployment Insurance", Journal of Political Economy, 116(2), pages 173-234.
dc.source.bibliographicCitationHopenhayn H. and J-P. Nicolini, 1997, "Optimal Unemployment Insurance", Journal of Political Economy, vol. 105(2), pages 412-38.
dc.source.bibliographicCitationKarni E., 2000, "Optimal Unemployment Insurance: A Survey", Southern Economic Journal, vol. 66(2), pages 442-465.
dc.source.bibliographicCitationMazza J., 2000, "Unemployment insurance: Case studies and lessons for Latin America and the Carribean", IADB working paper n 411.
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.instnameinstname:Universidad del Rosariospa
dc.source.reponamereponame:Repositorio Institucional EdocURspa
dc.subject.ddcEconomía laboral
dc.subject.keywordUnemployment insuranceeng
dc.subject.keywordinformal sectoreng
dc.subject.keyworddeveloping countrieseng
dc.subject.keywordincome effectseng
dc.subject.lembDesempleospa
dc.subject.lembSeguridad socialspa
dc.subject.lembEconomía informalspa
dc.subject.lembSeguros de desempleospa
dc.titleUnemployment insurance : severance payments and informality in developing countriesspa
dc.title.TranslatedTitleUnemployment insurance and informality in developing countrieseng
dc.typeworkingPapereng
dc.type.hasVersioninfo:eu-repo/semantics/acceptedVersion
dc.type.spaDocumento de trabajospa
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