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Unemployment Insurance or Individual Savings Accounts: Can Chile'S New Scheme Serve as a Model for Other Developing Countries?

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  • Kirsten Sehnbruch

Abstract

In 2002 the Chilean government implemented new legislation for an unemployment insurance scheme. It has been presented at both national and international levels as a model for other developing countries, because it provides protection against unemployment, avoids issues of moral hazard associated with traditional unemployment insurance systems, and has a relatively low public finance requirement. The insurance combines a system of individual savings accounts with a publicly financed contingency fund. This article examines how it will work in practice, and whether it can indeed serve as a model.

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  • Kirsten Sehnbruch, 2006. "Unemployment Insurance or Individual Savings Accounts: Can Chile'S New Scheme Serve as a Model for Other Developing Countries?," International Social Security Review, John Wiley & Sons, vol. 59(1), pages 27-48, January.
    • Handle: RePEc:wly:intssr:v:59:y:2006:i:1:p:27-48
    DOI: 10.1111/j.1468-246X.2006.00232.x
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    Cited by:

    1. Paula Nagler, 2013. "How unemployment insurance savings accounts affect employment duration: evidence from Chile," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-25, December.
    2. Alfred Boss & Alessio J. G. Brown & Dennis J. Snower, 2008. "Beschäftigungskonten für Deutschland," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(2), pages 139-155, May.
    3. Janine Berg, 2015. "Income support for the unemployed and the poor," Chapters, in: Janine Berg (ed.), Labour Markets, Institutions and Inequality, chapter 10, pages 263-286, Edward Elgar Publishing.
    4. Nagler P., 2013. "How unemployment insurance savings accounts affect employment duration : evidence from Chile," MERIT Working Papers 2013-039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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