World Bank Employment Policy Primer

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The World Bank Employment Policy Primer aims to provide a comprehensive, up-to-date resource on labor market policy issues. These short notes are concise summaries of best practice on various topics.

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Unemployment Insurance Simulation Model (UISIM)

2008-12, Fares, Jean, Vodopivec, Milan

This note describes the key features of the Unemployment Insurance Simulation Model (UISIM) - how the model is structured, what data inputs are needed, and what outputs the model generates (the model comes with user's and technical manuals, which provide detailed information about how to operate the model and how it calculates the outputs). For illustrative purposes, the note also presents an example where the model is used to generate simulations for a countrywide unemployment insurance (UI) system. The appendix to the note describes typical data sources and provides a detailed description of requisite data.

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Unemployment Insurance: Efficiency Effects and Lessons for Developing Countries

2004-04, Vodopivec, Milan

Unemployment insurance (UI) is the most common public income support program for the unemployed in developed countries.1 In these countries, it typically offers good protection: it covers the majority of employed persons, irrespective of occupation or industry, and provides adequate smoothening of consumption patterns. For example, studies on the U.S. find that the welfare of benefit recipient households is on average only 3-8 percent lower than the welfare of otherwise identical households, and that in the absence of unemployment insurance, average consumption expenditures would fall by about 20 percent. In the last decade, UI programs have been introduced in transition countries, and their use in developing countries is on the rise as well.