Social Insurance, Informality, and Labor Markets: How to Protect Workers While Creating Good Jobs
ISBN: 0199685231
EAN13: 9780199685233
Language: English
Release Date: Jan 20, 2015
Pages: 384
Dimensions: 1.6" H x 8.6" L x 5.7" W
Weight: 1.6 lbs.
Format: Hardcover

Social Insurance, Informality, and Labor Markets: How to Protect Workers While Creating Good Jobs

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Book Overview

Most countries implement social protection programs to help individuals manage risks such as unemployment, disability, illness, longevity or death. In many middle income countries, these are often based on a 'Bismarckian model' (named after Otto von Bismarck), where benefits are financed by contributions levied on salaried employment. In countries with a large informal sector, however, only a fraction of the population is covered by this system and non-contributory programs have been added or are planned to increase coverage. This can create distortions in the labor market, and the book is about policies to expand the coverage of social insurance programs to all workers, without reducing incentives to job creation and formal work.

While few would argue against the need and social merits of social insurance and social assistance programs there are growing concerns about their unintended consequences on labor markets because of poor design. The programs can distort incentives and individual behaviors in ways that either reduce employment levels and/or promote informality, ultimately affecting productivity and economic performance. For instance, high social security contribution rates can reduce formal employment; badly designed unemployment benefits can reduce incentives to keep, search, and take jobs; and fragmented social assistance programs can become a tax on formal Read More chevron_right

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