Moving towards employment insurance: Unemployment insurance and employment protection in the OECD

Klaus Schömann, Stefanie Flechtner, Ralf Mytzek and Isabelle Schömann

No FS I 00-201, Discussion Papers, Research Unit: Labor Market Policy and Employment from WZB Berlin Social Science Center

Abstract: The report takes issue with the large debate of social security systems and particularly the large expenditure devoted to unemployment insurance in most OECD countries. From the perspective of transitional labour markets we analyse the corresponding welfare regime focusing on employment and unemployment transitions. We propose a restructuring of national social security systems towards an employment insurance system. This entails a considerable reorganisation of most current social security systems mainly unemployment insurance, employment protection, pension systems, household work and life-long learning. We advocate an integrated view of employment protection and unemployment insurance systems which yields three major types of employment insurance systems in the OECD (comprehensive institutional data base in Appendix). Subsequently we discuss major recent changes in unemployment insurance systems throughout the OECD in view of their contribution towards the development of an Employment Insurance. Despite severe financial constraints on national levels, decentralisation and regionalisation of provision gives a new flavour to the ambitious goal of a right to work and its implementation.

Date: 2000
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