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Social Insurance, Informality, and Labor Markets – How to Protect Workers While Creating Good Jobs - Oxford Scholarship Online
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Social Insurance, Informality, and Labor Markets: How to Protect Workers While Creating Good Jobs

Markus Frölich, David Kaplan, Carmen Pagés, Jamele Rigolini, and David Robalino


Most countries implement social protection programs to help individuals manage income shocks and reduce poverty. Programs can be divided into two broad categories: social insurance and social assistance. Social insurance (SI) focuses on consumption smoothing. The most common programs include unemployment benefits, old-age, disability, and survivorship pensions, as well as health insurance. Social assistance (SA) programs focus on poverty prevention and mitigation. These usually take the form of in-cash or in-kind transfers allocated on the basis of means and/or individual characteristics (e.g. ... More

Keywords: social security, insurance, informal sector, inequality, poverty, employment, middle income countries, Latin America

Bibliographic Information

Print publication date: 2014 Print ISBN-13: 9780199685233
Published to Oxford Scholarship Online: March 2015 DOI:10.1093/acprof:oso/9780199685233.001.0001


Affiliations are at time of print publication.

Markus Frölich, editor
Professor of Econometrics, University of Mannheim and IZA

David Kaplan, editor
Senior Labor Market Specialist, Inter-American Development Bank

Carmen Pagés, editor
Chief of the Labor Markets and Social Security Unit, Inter-American Development Bank

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1 Social Insurance, Informality, and Labor Markets

Carmen Pagés, Jamele Rigolini and David Robalino

Part I Assessing the Effects of Social Insurance on Labor Markets

4 Effects of Non‐Contributory Systems on Informality

Mariano Bosch, M. Belén Cobacho and Carmen Pagés

5 Unemployment Insurance, Job Search, and Informal Employment*

David N. Margolis, Lucas Navarro and David Robalino

Part II Setting the Mandate of the Insurance Programs and Designing Redistributive Arrangements

8 Labor Income and the Design of Default Portfolios in Mandatory Pension Systems

Alfono R. Sánchez Martín, Sergi Jiménez Martín, David Robalino and Federico Todeschini

10 The Design of a Multi‐Tier Contributory Pension System

Orazio Attanasio, Costas Meghir and Andres Otero

Part III Financing Social Insurance Programs

14 Financing Universal Social Security in Mexico*

Arturo Antón and Fausto Hernández