The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers

Unemployment insurance transfers should balance the provision of consumption to the unemployed with the disincentive effects on the search behavior. Developing countries face the additional challenge of informality. Workers can choose to hide their employment state and labor income in informal jobs...

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Autores principales: Ruffo, Hernán, González-Rozada, Martín
Formato: info:eu-repo/semantics/preprint submittedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella 2023
Materias:
Unemployment Insurance
Sufficient statistics
Regression kink design
Instrumental Variables
C41
I38
J65
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/11876
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R163-20.500.13098-11876
record_format dspace
spelling I57-R163-20.500.13098-118762023-07-28T16:06:27Z The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers Ruffo, Hernán González-Rozada, Martín Unemployment Insurance Sufficient statistics Regression kink design Instrumental Variables C41 I38 J65 Unemployment insurance transfers should balance the provision of consumption to the unemployed with the disincentive effects on the search behavior. Developing countries face the additional challenge of informality. Workers can choose to hide their employment state and labor income in informal jobs, an additional form of moral hazard. To provide evidence about the effects of this policy in a country affected by informality we exploit kinks in the schedule of transfers in Argentina. Our results suggest that higher benefits induce moderate behavioral responses in job-finding rates and increase re-employment wages. We use a sufficient statistics formula from a model with random wage offers and we calibrate it with our estimates. We show that welfare could rise substantially if benefits were increased in Argentina. Importantly, our conclusion is relevant for the median eligible worker that is strongly affected by informality. Este documento de trabajo es una versión del artículo publicado en Journal of Human Resources. 2023-06-15T12:49:46Z 2023-06-15T12:49:46Z 2022 info:eu-repo/semantics/preprint info:eu-repo/semantics/submittedVersion https://repositorio.utdt.edu/handle/20.500.13098/11876 eng info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-sa/2.5/ar/ 34 p. application/pdf application/pdf Universidad Torcuato Di Tella
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Unemployment Insurance
Sufficient statistics
Regression kink design
Instrumental Variables
C41
I38
J65
spellingShingle Unemployment Insurance
Sufficient statistics
Regression kink design
Instrumental Variables
C41
I38
J65
Ruffo, Hernán
González-Rozada, Martín
The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers
topic_facet Unemployment Insurance
Sufficient statistics
Regression kink design
Instrumental Variables
C41
I38
J65
description Unemployment insurance transfers should balance the provision of consumption to the unemployed with the disincentive effects on the search behavior. Developing countries face the additional challenge of informality. Workers can choose to hide their employment state and labor income in informal jobs, an additional form of moral hazard. To provide evidence about the effects of this policy in a country affected by informality we exploit kinks in the schedule of transfers in Argentina. Our results suggest that higher benefits induce moderate behavioral responses in job-finding rates and increase re-employment wages. We use a sufficient statistics formula from a model with random wage offers and we calibrate it with our estimates. We show that welfare could rise substantially if benefits were increased in Argentina. Importantly, our conclusion is relevant for the median eligible worker that is strongly affected by informality.
format info:eu-repo/semantics/preprint
submittedVersion
author Ruffo, Hernán
González-Rozada, Martín
author_facet Ruffo, Hernán
González-Rozada, Martín
author_sort Ruffo, Hernán
title The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers
title_short The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers
title_full The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers
title_fullStr The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers
title_full_unstemmed The welfare effects of unemployment insurance in Argentina. New estimates using changes in the schedule of transfers
title_sort welfare effects of unemployment insurance in argentina. new estimates using changes in the schedule of transfers
publisher Universidad Torcuato Di Tella
publishDate 2023
url https://repositorio.utdt.edu/handle/20.500.13098/11876
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AT ruffohernan welfareeffectsofunemploymentinsuranceinargentinanewestimatesusingchangesinthescheduleoftransfers
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