Unemployment Benefits, Active Labor Market Policies, and Labor Market Outcomes : Evidence from New Global Data
Using novel data on unemployment benefits and active labor market policies in 191 countries in 2019 and 2020, this paper investigates the patterns of unemployment benefits and active labor market policies and their relationship with labor market ou...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099724404272240061/IDU080c14fc304529047c70b51b07a61f4022029 http://hdl.handle.net/10986/37367 |
| Summary: | Using novel data on unemployment
benefits and active labor market policies in 191 countries
in 2019 and 2020, this paper investigates the patterns of
unemployment benefits and active labor market policies and
their relationship with labor market outcomes. This study is
unique in that it covers a large number of developing as
well as developed countries and examines the association of
both unemployment benefits and active labor market policies
with several labor market outcomes at different income
levels. According to new data, in the first half of 2020,
about 48 percent of countries had an unemployment benefit
scheme compared to 82 percent that had some form of active
labor market policy. The econometric analyses show that
productivity growth has a positive relationship with both
unemployment benefits and active labor market policies in
upper-middle-income countries and with active labor market
policies in low- and lower-middle-income countries, but a
negative relationship with both unemployment benefits and
active labor market policies in high-income countries. The
findings also indicate a consistent negative association of
active labor market policies with the rate of
self-employment in all income groups and a negative
association with the rate of employment in upper
middle-income countries. These findings provide new insights
on the patterns of unemployment benefits and active labor
market policies and their interlinkages with labor market
policies at different income levels. |
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