Template-type: ReDif-Paper 1.0
Author-Name: Nagler P. 
Author-workplace-name: UNU-MERIT
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 andhigher mobility of the workforce in Chile.
Keywords: Duration Analysis, Optimal Timing Strategies, Labor Turnover, Vacancies, Layoffs, Unemployment, Duration, Incidence, Job Search,  Unemployment Insurance, Severance Pay, Plant Closings 
Classification-JEL: C41, J63, J64, J65
Series:  Working Papers
Creation-Date: 2013
Number: 2013-039
File-URL: https://unu-merit.nl/publications/wppdf/2013/wp2013-039.pdf
File-Format: application/pdf
File-Size: 660947
Handle: RePEc:unm:unumer:2013039