3The prevalence of UC differs markedly across the eight regions
covered by this book. It is nearly universal in OECD-20, CEE, and
FSU countries. The majority of countries in South America also have
UC programs. On the other hand, these programs are practically nonexistent in the countries of Sub-Saharan Africa and Central America and
the Caribbean, and they are comparatively rare in East and South Asia.
Yet, unemployment protection does exist in the latter groups of countries, mainly in the form of active labor market measures (e.g., training
or temporary public jobs programs), severance pay, social assistance
(SA) programs, and social investment funds. Of course, these latter
kinds of programs are present in many countries throughout the world.This chapter briefly surveys several types of unemployment protection arrangements throughout the world before devoting primary attention to UC. Unemployment protection programs focus on the current
labor force situation of a worker and provide income and other support
services to the unemployed. Note that unemployment is defined as
being without a job but being able to work, available to work, and
actively seeking work in the labor market.
1 The subsequent discussion
addresses a number of questions:
|• ||How can unemployment protection programs be classified?|
|• ||What has been the pace and pattern of adoptions of UC programs over time?|
|• ||What determines why countries have UC programs?|
|• ||How can the costs of UC programs be measured?|
|• ||How generous are UC programs?|
As noted in Chapter 2, the labor market is characterized by continuous turnover as new jobs appear, old jobs disappear, and workers
change jobs, move into and out of employment, and into and out of the
labor force. When jobs end, affected workers may be eligible for and
receive compensation, either from a public program or from their former employers. Some payments represent deferred compensation
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Unemployment Compensation throughout the World: A Comparative Analysis.
Contributors: Wayne Vroman - Author, Vera Brusentsev - Author.
Publisher: W.E. Upjohn Institute for Employment Research.
Place of publication: Kalamazoo, MI.
Publication year: 2005.
Page number: 45.
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