Unemployement Protection for Informal Workers in Latin America and the Caribbean
We use a dynamic stochastic general equilibrium search and matching model with salaried employment and informal self-employment to analyze the implications of introducing universal unemployment protection for informal workers through transfers, which are conditional on participation in training programs. We study how changes in unemployment benefits (UB) for unemployed workers in training programs (training UB), modify labor market outcomes for the unemployed. The model suggests that increasing training UB reduces unprotected unemployment and improves labor market outcomes through higher formal salaried employment and lower informal self-employment. Allowing for idiosyncratic quality in these training programs is key for these results. Higher training UB can also reduce total informal employment through a drastic reduction in the share of informal self-employment, without necessarily causing a large increase in total unemployment. Finally, the model suggests that increasing training UB may increase the volatility of unprotected unemployment. The influence of training programs on formal wage-setting is crucial to explain these results.
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Working Papers biblioteca |
| Language: | English |
| Published: |
Inter-American Development Bank
|
| Subjects: | Labor Policy, Informal Labor, Informal Economy, Unemployment Insurance, E02 - Institutions and the Macroeconomy, E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity, E26 - Informal Economy • Underground Economy, Social Security;WP-385, Business cycles, informality, labor search;Labor Policy, |
| Online Access: | http://dx.doi.org/10.18235/0011470 https://publications.iadb.org/en/unemployement-protection-informal-workers-latin-america-and-caribbean |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| id |
dig-bid-node-11237 |
|---|---|
| record_format |
koha |
| spelling |
dig-bid-node-112372024-05-30T20:30:06ZUnemployement Protection for Informal Workers in Latin America and the Caribbean 2012-09-28T00:00:00+0000 http://dx.doi.org/10.18235/0011470 https://publications.iadb.org/en/unemployement-protection-informal-workers-latin-america-and-caribbean Inter-American Development Bank Labor Policy Informal Labor Informal Economy Unemployment Insurance E02 - Institutions and the Macroeconomy E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E26 - Informal Economy • Underground Economy Social Security;WP-385, Business cycles, informality, labor search;Labor Policy We use a dynamic stochastic general equilibrium search and matching model with salaried employment and informal self-employment to analyze the implications of introducing universal unemployment protection for informal workers through transfers, which are conditional on participation in training programs. We study how changes in unemployment benefits (UB) for unemployed workers in training programs (training UB), modify labor market outcomes for the unemployed. The model suggests that increasing training UB reduces unprotected unemployment and improves labor market outcomes through higher formal salaried employment and lower informal self-employment. Allowing for idiosyncratic quality in these training programs is key for these results. Higher training UB can also reduce total informal employment through a drastic reduction in the share of informal self-employment, without necessarily causing a large increase in total unemployment. Finally, the model suggests that increasing training UB may increase the volatility of unprotected unemployment. The influence of training programs on formal wage-setting is crucial to explain these results. Inter-American Development Bank Alan Finkelstein-Shapiro Miguel Sarzosa Working Papers application/pdf IDB Publications The Caribbean South America Central America en |
| institution |
BID |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-bid |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca Felipe Herrera del BID |
| language |
English |
| topic |
Labor Policy Informal Labor Informal Economy Unemployment Insurance E02 - Institutions and the Macroeconomy E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E26 - Informal Economy • Underground Economy Social Security;WP-385, Business cycles, informality, labor search;Labor Policy Labor Policy Informal Labor Informal Economy Unemployment Insurance E02 - Institutions and the Macroeconomy E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E26 - Informal Economy • Underground Economy Social Security;WP-385, Business cycles, informality, labor search;Labor Policy |
| spellingShingle |
Labor Policy Informal Labor Informal Economy Unemployment Insurance E02 - Institutions and the Macroeconomy E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E26 - Informal Economy • Underground Economy Social Security;WP-385, Business cycles, informality, labor search;Labor Policy Labor Policy Informal Labor Informal Economy Unemployment Insurance E02 - Institutions and the Macroeconomy E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E26 - Informal Economy • Underground Economy Social Security;WP-385, Business cycles, informality, labor search;Labor Policy Inter-American Development Bank Unemployement Protection for Informal Workers in Latin America and the Caribbean |
| description |
We use a dynamic stochastic general equilibrium search and matching model with salaried employment and informal self-employment to analyze the implications of introducing universal unemployment protection for informal workers through transfers, which are conditional on participation in training programs. We study how changes in unemployment benefits (UB) for unemployed workers in training programs (training UB), modify labor market outcomes for the unemployed. The model suggests that increasing training UB reduces unprotected unemployment and improves labor market outcomes through higher formal salaried employment and lower informal self-employment. Allowing for idiosyncratic quality in these training programs is key for these results. Higher training UB can also reduce total informal employment through a drastic reduction in the share of informal self-employment, without necessarily causing a large increase in total unemployment. Finally, the model suggests that increasing training UB may increase the volatility of unprotected unemployment. The influence of training programs on formal wage-setting is crucial to explain these results. |
| author2 |
Alan Finkelstein-Shapiro |
| author_facet |
Alan Finkelstein-Shapiro Inter-American Development Bank |
| format |
Working Papers |
| topic_facet |
Labor Policy Informal Labor Informal Economy Unemployment Insurance E02 - Institutions and the Macroeconomy E24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity E26 - Informal Economy • Underground Economy Social Security;WP-385, Business cycles, informality, labor search;Labor Policy |
| author |
Inter-American Development Bank |
| author_sort |
Inter-American Development Bank |
| title |
Unemployement Protection for Informal Workers in Latin America and the Caribbean |
| title_short |
Unemployement Protection for Informal Workers in Latin America and the Caribbean |
| title_full |
Unemployement Protection for Informal Workers in Latin America and the Caribbean |
| title_fullStr |
Unemployement Protection for Informal Workers in Latin America and the Caribbean |
| title_full_unstemmed |
Unemployement Protection for Informal Workers in Latin America and the Caribbean |
| title_sort |
unemployement protection for informal workers in latin america and the caribbean |
| publisher |
Inter-American Development Bank |
| url |
http://dx.doi.org/10.18235/0011470 https://publications.iadb.org/en/unemployement-protection-informal-workers-latin-america-and-caribbean |
| work_keys_str_mv |
AT interamericandevelopmentbank unemployementprotectionforinformalworkersinlatinamericaandthecaribbean |
| _version_ |
1809106983599472640 |