Protecting Workers Against Unemployment in Latin America and the Caribbean: Evidence from Argentina

Posted: 8 Jan 2012

See all articles by Martín González-Rozada

Martín González-Rozada

Universidad Torcuato Di Tella

Lucas Ronconi

Centro de Investigación y Acción Social & CONICET

Hernan Ruffo

IERAL - Fundacion Mediterranea

Date Written: December 2011

Abstract

This paper takes advantage of several reforms that provide time and cross sectional variation to identify the effects of unemployment insurance and severance payments on the duration of unemployment and on the separation probability in Argentina. Administrative data permits analysis of the duration of unemployment of covered spells with detailed information about transfers and their duration, while household surveys permit the study of separation probability and transitions to informal jobs, which are not observed in administrative data. It is found that unemployment duration increases significantly when unemployment insurance transfers are higher or are provided for a longer period; the effects of severance pay on unemployment duration are less robust. On the other hand, higher severance pay is found to reduce separation probability, while unemployment insurance transfers have a positive but small effect on separations.

JEL Classification: I38, J64, J65, J68

Suggested Citation

González Rozada, Martín and Ronconi, Lucas and Ruffo, Hernan, Protecting Workers Against Unemployment in Latin America and the Caribbean: Evidence from Argentina (December 2011). IDB Working Paper No. IDB-WP-268. Available at SSRN: https://ssrn.com/abstract=1981541

Martín González Rozada (Contact Author)

Universidad Torcuato Di Tella ( email )

Saenz Valiente 1010
Buenos Aires, C1428BIJ
Argentina
5411 51697318 (Phone)

HOME PAGE: http://www.utdt.edu/profesores/mrozada

Lucas Ronconi

Centro de Investigación y Acción Social & CONICET ( email )

Av. Callao 542
Buenos Aires, 1022
Argentina

Hernan Ruffo

IERAL - Fundacion Mediterranea ( email )

Juan del Campillo 394
Cordoba 5000
Argentina

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