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The role of exemptions

The role of exemptions. Different measures, same trend. Shadow rate and non-employment. Shadow and unemployment in the South. The UB-EPL trade-off. Estimating Demand for Unemployment Insurance. As a function of EPL 3 types of questions/respondents: unemployed employees not covered by UI

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The role of exemptions

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  1. The role of exemptions

  2. Different measures, same trend

  3. Shadow rate and non-employment

  4. Shadow and unemployment in the South

  5. The UB-EPL trade-off

  6. Estimating Demand for Unemployment Insurance As a function of EPL 3 types of questions/respondents: • unemployed • employees not covered by UI • employees covered (GER) Outlined specific insurance schemes (duration UB and replacement rate) Elicited willingness to subscribe and willingness to pay

  7. Main Results • Everywhere majority of unemployed wishing to subscribe and pay more than fair insurance • Majority of employees uncovered wishing to subscribe, paying more than fair premium • Minority of employees covered wishing to pay for extended duration of benefits • Perceived risk of job loss as single most important determinant of demand for UI

  8. Imagine that tomorrow you were offered a job giving you the right to receive, in case of job loss, 70% of your salary per each month of unemployment, with a maximum of one year.

  9. Ranking of EPL for Regular Contracts vs Incidence of Temporary Employment

  10. Union membership and skill

  11. Unions’ presence and influence

  12. The unions’ free rider problem

  13. Litigations, workers' victories and regional unemployment ratesItaly, 1995-1998 averages Elaborations on ISTAT micro data

  14. Many reforms and of all kinds:the fRDB inventory

  15. Employment Protection LegislationAverage yearly Number of Reforms in Europe per country

  16. Unemployment BenefitsAverage yearly Number of Reforms in Europe per country

  17. Gross and Net Job Flows

  18. Reforms and Stocks (Temporary employment in Spain) (as % of total employees)

  19. Effects of recent reforms on labour flows Flows from temporary employment to permanent employment (as % of temporary employment)

  20. Effects of recent reforms on labour market flows Flows from unemployment to employment (as %unemployed)

  21. Effects of recent reforms on labour market flows Transition Probabilities from Employment to Unemployment Transition Probabilities from Unemployment to Employment

  22. Effects of recent reforms on labour market flows Transition Probabilities from Temporary Employment to Permanent Employment

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