Regional and Sectoral Studies

2004, Vodopivec, Milan

With the aim to provide guidelines for countries wishing to introduce or improve income support systems for the unemployed, the book summarizes the evidence about the performance of five such systems: unemployment insurance, unemployment assistance, unemployment insurance savings accounts, severance pay, and public works. These systems are evaluated by two sets of criteria: (1) performance criteria, evaluating how well these systems work - how they protect incomes and what other, particularly efficiency related, effects they may have; and (2) design and implementation criteria, evaluating how these systems fit the country - how suitable are these programs given country-specific conditions, chief among them being labor market and other institutions, the capacity needed for administering income support programs, the size of the informal sector, and prevalence of private transfers. This report also offers summary evaluations of alternative systems by describing the strengths and weaknesses of each system and pointing out the country specific circumstances that are particularly conducive to performance.