Template-type: ReDIF-Paper 1.0
Author-Name: Nagler, Paula
Author-Email: nagler@merit.unu.edu
Author-Workplace-Name: UNU-MERIT / MGSoG
Title: How unemployment insurance savings accounts affect employment duration: Evidence 
	 from Chile
Abstract: The introduction of unemployment insurance savings accounts (UISA) in 
	 Chile in October 2002 brought in more comprehensive unemployment 
	 protection while decreasing the opportunity costs of job change. Being 
	 the first to empirically investigate the effect of UISA on employment 
	 duration, this paper examines (i) whether the introduction of UISA 
	 affected employment duration among formal private sector workers, and 
	 (ii) the magnitude of this effect. The analysis is performed on 
	 longitudinal social protection data and uses survival analysis 
	 techniques, including non-parametric, semi-parametric and parametric 
	 analysis, and competing-risk models. The paper finds that workers 
	 participating in the scheme show an increased hazard ratio of leaving 
	 employment, or accelerated time to employment termination. The effect is 
	 larger for workers becoming unemployed or inactive compared to workers 
	 changing jobs. The results provide strong support that the introduction 
	 of UISA led to shorter employment duration and higher mobility of the 
	 workforce in Chile.
Classification-JEL: C41, J63, J64, J65
Keywords: Unemployment Insurance Savings Accounts, Employment Duration, Survival Analysis,
	 Chile
Series: UNU-MERIT Working Papers
Creation-Date: 2013
Number: 039
File-URL: http://www.merit.unu.edu/publications/wppdf/2013/wp2013-039.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2013039