Download or read book Social Insurance Informality and Labor Markets written by Markus Frölich and published by OUP Oxford. This book was released on 2014-12-04 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 labor and encourage informality. The book reviews the evidence regarding the effects of social insurance and social assistance programs on labor market outcomes and discusses options to improve their design and implementation. The book focuses particularly on middle income countries in Latin America and Asia with a large informal sector and suggests ways to reduce these distortions and better manage and finance the subsidies to make coverage universal, while creating good jobs. The book compiles expert papers from the joint conferences of the World Bank (WB), the Institute for the Study of Labor (IZA) and the Inter-American Development Bank (IDB) on Employment and Development.
Download or read book From Right to Reality written by Helena Ribe and published by World Bank Publications. This book was released on 2012-03-13 with total page 455 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study highlights the interaction between social protection (SP) programs and labor markets in the Latin America region. It presents new evidence on the limited coverage of existing programs and emphasizes the challenges caused by high informality for achieving universal social protection for old age income, health, unemployment risks and anti-poverty safety nets. It identifies interaction effects between SP programs and the behavioral responses of workers, firms and social protection providers, which can further undermine efforts to expand coverage, summarizing evidence from recent work across the region. The book argues for a re-design of financing to eliminate cross subsidies between members of contributory programs and subsidies that effectively tax income from formal employment. It advocates well-targeted, tax-funded, tapered subsidies to provide incentives to the savings efforts of low-income workers, coupled with an effective safety net for the extreme poor who have no capacity to contribute to financing their own social protection arrangements. It also argues for the consolidation of programs and harmonization of benefits packages across different insurers. The book develops an overall conceptual framework and presents in-depth analysis of the main SP sectors of pensions, health, unemployment insurance and labor market programs, and safety net transfers.
Download or read book Social Protection vs Economic Flexibility written by Rebecca M. Blank and published by University of Chicago Press. This book was released on 2009-05-15 with total page 387 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the Clinton administration considers major overhauls in health insurance, welfare, and labor market regulation, it is important for economists and policymakers to understand the impact of social and welfare programs on employment rates. This volume explores how programs such as social security, income transfers, and child care in Western Europe, the United States, and Japan have affected labor market flexibility—the ability of workers to adjust to fast-growing segments of the economy. Does tying health insurance to employment limit job mobility? Do housing policies inhibit workers from moving to new jobs in different areas? What are the effects of daycare and maternity leave policies on working mothers? The authors explore these and many other questions in an effort to understand why European unemployment rates are so high compared with the U.S. rate. Through an examination of diverse data sets across different countries, the authors find that social protection programs do not strongly affect labor market flexibility. A valuable comparison of labor markets and welfare programs, this book demonstrates how social protection policies have affected employment rates around the globe.
Download or read book Learning from Experience written by Francie Jane Lund and published by International Labour Organization. This book was released on 2000 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an overview of the need for social protection of women workers in the informal sector. Sketches some innovative approaches to social protection that have been undertaken by governments, community-based organizations and other non-governmental bodies; identifies gaps and priorities for future research, development programme and policy. Appendix: Case studies (Case 7: The South African Old Age Pension (SA-OAP)).
Download or read book Expanding Social Insurance Coverage to Informal Workers written by Hernan Winkler and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The high incidence of informality in developing countries implies that many workers are not covered against important risks, such as unemployment, illness and old-age poverty. Given that expanding the Bismarckian system to include informal workers presents many challenges, several countries implemented non-contributory social insurance programs to expand coverage. However, these contributed to labor market segmentation and are unlikely to be financially sustainable. This note reviews the economic literature dealing with the expansion of social insurance programs and summarizes the main policy insights. It draws on international evidence on social insurance system design and innovations, and the resulting impact on coverage. It also provides general design principles that can apply to unemployment benefits, health insurance, and pensions.
Download or read book Social Protection and Informal Workers in Sub Saharan Africa written by Lone Riisgaard and published by Routledge. This book was released on 2021-11-24 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: The promotion of social protection in Sub-Saharan Africa happens in a context where informal labour markets constitute the norm, and where most workers live uncertain livelihoods with very limited access to official social protection. The dominant social protection agenda and the associated literature come with an almost exclusive focus on donor and state programmes even if their coverage is limited to small parts of the populations – and in no way stands measure to the needs. In these circumstances, people depend on other means of protection and cushioning against risks and vulnerabilities including different forms of collective self-organizing providing alternative forms of social protection. These informal, bottom-up forms of social protection are at a nascent stage of social protection discussions and little is known about the extent or models of these informal mechanisms. This book seeks to fill this gap by focusing on three important sectors of informal work, namely: transport, construction, and micro-trade in Kenya and Tanzania. It explores how the global social protection agenda interacts with informal contexts and how it fits with the actual realities of the informal workers. Consequently, the authors examine and compare the social protection models conceptualized and implemented ‘from above’ by the public authorities in Tanzania and Kenya with social protection mechanisms ‘from below’ by the informal workers own collective associations. The book will be of interest to academics in International Development Studies, Political Economy, and African Studies, as well as development practitioners and policy communities.
Download or read book Informal Labor and the Efficiency Cost of Social Programs written by François Gerard and published by . This book was released on 2016 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: It is widely believed that the presence of a large informal sector increases the efficiency cost of social programs - transfer and social insurance programs - in developing countries. We evaluate such claims for policies that have been heavily studied in countries with low informality - increases in unemployment insurance (UI) benefits. We introduce informal work opportunities into a canonical model of optimal UI that specifies the typical tradeoff between workers' need for insurance and the efficiency cost from distorting their incentives to return to a formal job. We then combine the model with evidence drawn from comprehensive administrative data to quantify the efficiency cost of increases in potential UI duration in Brazil. We find evidence of behavioral responses to UI incentives, including informality responses. However, because reemployment rates in the formal sector are low to begin with, most beneficiaries would draw the UI benefits absent behavioral responses, and only a fraction of the cost of (longer) UI benefits is due to perverse incentive effects. As a result, the efficiency cost is relatively low, and in fact lower than comparable estimates for the US. We reinforce this finding by showing that the efficiency cost is also lower in labor markets with higher informality within Brazil. This is because formal reemployment rates are even lower in those labor markets absent behavioral responses. In sum, the results go against the conventional wisdom, and indicate that efficiency concerns may even become more relevant as an economy formalizes
Download or read book Social Protection for Informal Workers in Asia written by Sri Wening Handayani and published by Asian Development Bank. This book was released on 2016-12-01 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication examines the need to expand social protection coverage of the informal sector to support working age productivity, reduce vulnerability, and improve economic opportunity. Case studies from Bangladesh, the People's Republic of China, India, Indonesia, Pakistan, the Philippines, and Thailand offer suggestions to close social protection gaps and recommend policy solutions to create equitable and inclusive social protection programs for informal workers.
Download or read book Striving for Better Jobs written by Roberta Gatti and published by World Bank Publications. This book was released on 2014-09-12 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: While economic growth has been sustained for a number of years in many countries in the Middle East and North Africa (MENA) region, this has not resulted in the creation of an adequate number of jobs and has succeeded, at best, in generating low-quality, informal jobs. While there is a great deal of heterogeneity across countries, informality in MENA is widespread, and some countries in the region are amongst the most informal economies in the world. The book looks at informality through a human development angle and focuses specifically on informal employment. In line with this approach, the working definition for informality adopted in the book is “lack of social security coverage” (usually understood as pensions, or if a pension system does not exist, as health insurance), which captures well the vulnerability associated with informal employment. Informal workers in MENA are generally engaged in low productivity jobs - more so than in comparator countries -, are paid less for otherwise similar work in the formal sector, and self-report low levels of satisfaction at work. Also, informal workers in MENA face important mobility barriers into formal employment and thus lack of social security coverage against health, unemployment, and old-age risks. Formal employment in the MENA region is strongly associated with public sector employment. Opportunities for formal employment in the private sector in the region remain very limited. The book identifies 5 strategic directions to promote long-term inclusive growth and formality, namely: (i) fostering competition; (ii) realigning incentives in the public sector; (iii) moving towards labor regulations that promote labor mobility and provide support to workers in periods of transition; (iv) enhancing the productivity of informal workers through training and skills upgrading; and (v) reforming existing social insurance systems and introduce new instruments for coverage extension. This book is addressed to policy makers, academics, and practitioners who wish to understand the phenomenon of informal employment, and policy options for promoting more inclusive and productive labor market opportunities.
Download or read book Informality Revisited written by William Francis Maloney and published by World Bank Publications. This book was released on 2003 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author develops a view of the informal sector in developing countries primarily as an unregulated micro-entrepreneurial sector and not as a disadvantaged residual of segmented labor markets. Drawing on recent work from Latin America, he offers alternative explanations for many of the characteristics of the informal sector customarily regarded as evidence of its inferiority.
Download or read book Good Jobs Bad Jobs No Jobs written by Tony Avirgan and published by . This book was released on 2005 with total page 524 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Achieving Effective Social Protection for All in Latin America and the Caribbean written by Helena Ribe and published by World Bank Publications. This book was released on 2010-06-22 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study highlights the interaction between social protection programs and labor markets in the Latin America region. It presents new evidence on the limited coverage of existing programs and emphasizes the challenges caused by high informality for achieving universal social protection for old age income, for health, for unemployment risks and for anti poverty safety nets. It identifies interaction effects between SP programs and the behavioral responses of workers, firms and social protection providers, which can further undermine efforts to expand coverage, summarizing evidence from recent work across the region. It argues for a re-design of financing to eliminate cross subsidies between members of contributory programs and subsidies that effectively tax income from formal employment. Instead, it advocates well-targeted, tax-funded tapered subsidies to provide incentives to the savings efforts of low income workers, coupled with an effective safety net for the extreme poor who have no capacity to contribute to financing their own social protection arrangements. It also argues for the consolidation of programs and harmonization of benefits packages across different insurers. The book develops an overall conceptual framework and presents in-depth analysis of the main SP sectors of pensions, health, unemployment insurance and safety net transfers.
Download or read book Labor Markets in Latin America written by Sebastian Edwards and published by Brookings Institution Press. This book was released on 2001-06-29 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many of the rules that govern labor markets in Latin America (and elsewhere) raise labor costs, create barriers to entry, and introduce rigidities in the employment structure. These include the exceedingly restrictive regulations on hiring and firing practices, as well as burdensome social insurance schemes. Such labor market regulations contribute to an over-expansion of precarious forms of employment and to rural poverty, and hinder countries from responding rapidly to new challenges from increased foreign competition. At the same time, other norms can reduce costs and raise productivity; they should be kept in place and their enforcement improved. For example, some occupational health and safety standards lower medical costs and save lives. One may also want to keep legislation aimed at providing a minimum social insurance for unemployment, old age, sickness, and disabilities. In practice, the most common decision that governments confront is not whether to intervene but to choose among different forms of intervention. This volume provides analysts and policymakers with useful insights on this issue. Part I addresses labor market institutions in a broader context, such as collective bargaining arrangements, minimum wages and poverty, and optimal unemployment insurance schemes. Part II analyzes labor market performance in Latin America, the links between performance and labor market regulations, and the status of labor market reform in the region. These questions are addressed for the region as a whole and in great detail for Argentina, Brazil, Chile, Mexico, and Colombia. The book provides a comprehensive description of the existing labor institutions in Latin America, the problems they pose, and the trends in labor market reforms as well as the difficulties encountered by the reform process in specific cases. In addition to the editors, the contributors are Edward Amadeo, Jose Marcio Camargo, Alejandra Cox Edwards, Rene Cortazar, Enriqu
Download or read book Informality and Inclusive Growth in the Middle East and North Africa written by Gladys Lopez-Acevedo and published by World Bank Publications. This book was released on 2023-06-30 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: The long-standing informality debate in the Middle East and North Africa (MENA) Region has taken on a new urgency as it looks for a pathway to more socially inclusive growth that is less reliant on fossil fuels. This is occurring against a backdrop of subpar labor market outcomes, further growth setbacks, and deteriorating fiscal and current account deficits in the aftermath of the COVID-19 pandemic--and in the wake of high inflation and supply chain disruptions triggered by the Russian Federation-Ukraine war. 'Informality and Inclusive Growth in the Middle East and North Africa' aims to better understand the characteristics and incentive structure that have led to the prevalence of informal employment in three MENA countries--the Arab Republic of Egypt, Morocco, and Tunisia. The report breaks new ground by adopting a comprehensive perspective to focus on the features of, and interrelationships among, different aspects of these countries' institutional landscapes to make sense of the complex incentive structure that workers and firms face when deciding between formal and informal options. Specifically, the report groups these issues in three broad realms: (1) entrepreneur-worker relations, (2) taxes and transfers, and (3) market conditions. 'This report is an extremely welcome addition to the literature on MENA labor markets. By analyzing the incentive structure and institutional factors that have led to the prevalence of informal employment in Egypt, Morocco, and Tunisia, it points the way to policy actions that can be taken to reduce informality and increase social protection for workers. It is a must-read for anyone who cares about greater economic inclusion in MENA.' --Ragui Assaad, Professor, Hubert H. Humphrey School of Public Affairs, University of Minnesota 'A compelling account of the implications of informality in the workforce and how economies of MENA can design appropriate policy responses. This timely report comes amid multiple social reforms in MENA and is a must-read for policy practitioners and economists in the region.' --Karim El Aynaoui, Executive President, Policy Center for the New South 'This report is particularly timely given the negative impact the COVID-19 pandemic and subsequent crises have had on living standards and poverty rates around the world and especially in MENA countries. While the focus on boosting growth and achieving the Sustainable Development Goals has revolved around financing, the report sheds new light on the benefits that tackling informality through institutional, regulatory, and policy changes could present to achieving these goals.' --Mahmoud Mohieldin, Executive Director, International Monetary Fund
Download or read book Social Security Outside the Realm of the Employment Contract written by Mies Westerveld and published by Edward Elgar Publishing. This book was released on 2019 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: All over the world countries face the challenge of inadequate social security coverage for workers without an employment contact. In countries of the global south, this phenomenon is a natural consequence of large informal economies. Countries in the global north increasingly witness the same issue, due to growing labour market flexibility (flex contracts, dependent self-employment, digitization of labour). In this book authors from both hemispheres exchange insights, experiments and practices with the intention of finding better ways to deal with the social security challenges facing workers.
Download or read book Institutional and Financial Incentives for Social Insurance written by Claude d'Aspremont and published by Springer Science & Business Media. This book was released on 2002-01-31 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: Institutional and Financial Incentives for Social Insurance provides both an empirical and a theoretical account of the main difficulties presently threatening social insurance systems in most industrialized countries. It analyzes the remedies that have been discussed and sometimes introduced and addresses many questions still left largely unresolved: Are newly implemented or proposed reforms providing the correct incentives to all participants in the system? Is the quality of service improving and, if not, what can be done? How should the budgetary problems be solved considering both intra-generational and inter-generational redistributive policies? The volume describes a number of studies of social security systems in various countries and assesses the effect of various policies, including welfare or unemployment benefits, training and other active labour market policies, the provision of pension, and competition and budget devolution in health care. It applies empirical tests to individual preferences concerning unemployment compensation, and it analyzes nonfunded and funded social security systems, the transition from one system to the other, and the willingness to pay for pensions. This book will be of interest to academics, researchers and students in public, labour, health and welfare economics, as well as experts and researchers in social insurance.
Download or read book Protecting All written by Truman Packard and published by World Bank Publications. This book was released on 2019-10-04 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Socially inclusive growth is the talk of the town in developing countries. But to go from talk to walk these countries face a critical task: reconstructing their welfare states given the failures of the standard Bismarckian model and the challenges posed by rapid technological change. This book—known to many as the White Paper—is indispensable for tackling this task. It develops a clear conceptual framework to help policy makers understand this complex issue, set clear objectives, evaluate trade-offs, and chart a coherent path of reform. A much-needed and very welcome contribution." --Santiago Levy, Senior Fellow—Global Economy and Development, Brookings Economic and Social Policy in Latin America Initiative, Brookings Institution "Most countries have failed to support people adequately as the combination of globalization and technology changes the structure of their economies and their jobs. This has fostered a backlash in which economic insecurity is widespread and support for populist policies is on the rise. We can do much better than this by sharing risks and providing a guaranteed minimum to everyone. This important book lays out a set of policies that strikes a new balance between economic flexibility and individual security that is relevant to both advanced and developing countries." --Minouche Shafik, Director, London School of Economics and Political Science "Economic insecurity confronts working people around the world today. To overcome this insecurity through suitable risk-sharing interventions is a policy challenge of the first order. This exceptionally thoughtful and clearly written book charts a course for replacing employment-based risk-sharing policies with social insurance†“based ones, financed by general revenues with the broadest possible base. The resultant Flexicurity model promises 'a more robust and resilient policy response to a diverse and fluid world of work.' " --Gary Fields, Professor of International and Comparative Labor and Professor of Economics, Cornell University "Protecting All presents thoughtful, thorough, and bold proposals to achieve universal social protection in a modern welfare state. This lucid document identifies implementable policies for poverty prevention, coping with livelihood shocks, and managing labor market risks that range from state-guaranteed publicly funded income floors to mandated consumption-smoothing mechanisms funded by individual contributions to privately financed incentivized and purely voluntary consumption-smoothing schemes. Clearly written, rich with ideas, and relevant for countries at all income levels, Protecting All is bound to become an essential reference for policy makers and policy analysts focused on (re)designing social protection systems that achieve key social goals in ways consistent with fast-changing labor markets, fiscal sustainability, and economic efficiency and growth." --Nora Lustig, Professor of Latin American Economics and Director of the Commitment to Equity Institute, Tulane University