Unemployment Compensation throughout the World: A Comparative Analysis

By Wayne Vroman; Vera Brusentsev | Go to book overview

initiatives, and changes in administrative structures will figure prominently in the reform initiatives.

The unemployment experiences of smaller OECD-20 countries are different. Austria, Denmark, Ireland, and the Netherlands, four small- to medium-sized economies, can be described as success stories terms of unemployment. Much of the success has been attributed to particular institutional features, macroeconomic policies, and specific labor market interventions. Yet the success these four countries achieved in lowering unemployment has had little impact on aggregate unemployment in the OECD-20 countries.

Finally, the regression results suggest that the share of spending on active measures varies with the unemployment rate, decreasing in years when unemployment increases. For many countries, the mix between active and passive labor market measures changes back to the prerecession mix in the following year. The results also suggest that the share of spending on active measures increased in about two-thirds of the OECD-20 countries and decreased in the other third. For the subset of four countries with longer expenditure series, the regression results are not significant. Overall, the emphasis on active labor market measures in OECD policy discussions is not consistently reflected in actual spending.

Chapter 8 examines a closely related topic: policies to shorten the duration of unemployment. This particular problem is present not only in the OECD-20 countries but also in the CEE-FSU countries to be examined in the next chapter.


Notes
1.
Prominent examples include the first volume of the OECD jobs study (OECD 1994) and a summary analysis of social exclusion (OECD 1998).
2.
Examples include papers by Blanchard and Wolfers (2000) and Blanchard and Portugal (2001).
3.
Throughout this discussion, the term average refers to the simple (unweighted) average.
4.
The regressions utilize dummy variables for three of the four regions. The ad- justed R2 is 0.33.
5.
The adjusted R2 using regional dummy variables to explain the registered-to- survey unemployment ratios is only 0.08. Note that two countries from southern Europe are not included in this analysis. If they were included, a stronger associa- tion might be observed.

-106-

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Unemployment Compensation throughout the World: A Comparative Analysis
Table of contents

Table of contents

  • Unemployment Compensation Throughout the World - A Comparative Analysis *
  • Contents v
  • Figures vii
  • Tables viii
  • 1 - Introduction 1
  • Notes 6
  • Part 1 - A Global Perspective *
  • 2 - Economic Performance and Unemployment 9
  • Notes 42
  • 3 - Unemployment Protection 45
  • Notes 75
  • Part 2 - Regional Aspects of Unemployment Protection *
  • 4 - Unemployment Compensation in the Oecd-20 Countries 81
  • Notes 106
  • 5 - Unemployment Compensation in the Cee-Fsu Countries 109
  • Notes 125
  • 6 - Unemployment Compensation in East and South Asia 127
  • Notes 143
  • 7 - Unemployment Compensation in Latin American and Caribbean Countries 145
  • Notes 165
  • Part 3 - Problem Areas for Unemployment Compensation Programs *
  • 8 - Three Problem Areas for Unemployment Compensation Programs 169
  • Notes 210
  • 9 - Conclusion 213
  • Appendix A - Labor Market Data for 150 Countries 219
  • Appendix B - Output Changes and Employment Changes 227
  • Notes 232
  • Appendix C - Regression Estimates of Uc Benefit Generosity 233
  • Appendix D - Uc Provisions and Uc Costs in Cee-Fsu Countries 235
  • Appendix E - Determinants of Long-Term Unemployment Percentages 245
  • Notes 252
  • References 253
  • The Authors 259
  • Index 261
  • About the Institute 273
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