Comparative Economic Studies

, Volume 52, Issue 2, pp 225–247 | Cite as

How Viable are Unemployment Insurance Savings Accounts? Simulation Results for Slovenia

  • Milan Vodopivec
Regular Article

Abstract

Applying a methodology similar to Feldstein and Altman (1998) to Slovenia's unemployment insurance (UI) system, the paper shows that unemployment insurance savings accounts (UISAs) are a viable alternative to a modest, but not generous, UI system. Under the modest regime, only one quarter of workers end their working life with a negative cumulative balance and 43% ever experience a negative UISA balance; in contrast, under the generous regime, 49% of workers end their working life with a negative cumulative balance and 66% ever experience a negative balance. The simulations also show that the level of redistribution under UISAs lags behind the redistribution implied by the UI system.

Keywords

unemployment insurance unemployment insurance savings accounts simulation 

JEL Classifications

J65 C23 

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Copyright information

© Association for Comparative Economics 2009

Authors and Affiliations

  • Milan Vodopivec
    • 1
  1. 1.The World BankWashingtonUSA

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