Active Unemployment Insurance
Link to article:
Authors:
Røed, Knut
Year:
2012
Reference:
Andre skrifter
IZA Policy Paper no 41
Summary
The paper argues that a comprehensive activation strategy is called for – in both unemployment and disability insurance – to minimize the conflict between income insurance and work incentives and to prevent the economic crisis from causing a long-lasting decline in labor force participation. A review of recent empirical evidence, particularly from the Scandinavian countries indicates that “mild” activation requirements effectively counteract moral hazard problems in social insurance. The paper also argues that the distinction between unemployment and disability is blurred, and that both temporary and permanent disability insurance programs should be designed to encourage and support the use of remaining (partial) work capacity.
JEL:
H55, J65
Keywords:
activation, moral hazard, disability insurance, unemployment insurance, ALMP
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway
Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 185201
Frisch prosjekt: 1181 - Activation and social insurance