The fiscal costs of unemployment insurance

This paper studies the fiscal costs of unemployment insurance (UI). It surveys alternative methods used in the literature to estimate UI’s impact on the government budget and compares them within a unified framework that incorporates behavioral responses, wage effects, and fiscal externalities. Thes...

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Detalles Bibliográficos
Autores principales: Herrera, Joaquín, González-Rozada, Martín, Ruffo, Hernán
Formato: Documento de trabajo
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella. Departamento de Economía 2025
Materias:
Subsidio de desempleo
Unemployment insurance
Políticas Públicas
Public Policies
Política laboral
Labour Policy
Política Fiscal
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/13401
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R163-20.500.13098-13401
record_format dspace
spelling I57-R163-20.500.13098-134012025-05-28T05:03:10Z The fiscal costs of unemployment insurance Herrera, Joaquín González-Rozada, Martín Ruffo, Hernán Subsidio de desempleo Unemployment insurance Políticas Públicas Public Policies Política laboral Labour Policy Política Fiscal This paper studies the fiscal costs of unemployment insurance (UI). It surveys alternative methods used in the literature to estimate UI’s impact on the government budget and compares them within a unified framework that incorporates behavioral responses, wage effects, and fiscal externalities. These methods are then applied to administrative data from Argentina. Combined with estimates of the consumption drop following unemployment, the paper evaluates the Marginal Value of Public Funds (MVPF) for UI and finds that, while results vary depending on the treatment of fiscal externalities, MVPF typically exceed one—indicating that the social benefits of marginal increases in UI outweigh their fiscal costs. Herrera, J., González-Rozada, M., Ruffo, H. (2025). The fiscal costs of unemployment Insurance. [Documento de trabajo]. Repositorio Digital Universidad Torcuato Di Tella. https://repositorio.utdt.edu/handle/20.500.13098/13401 Universidad Torcuato Di Tella. Departamento de Economía 2025-05-27T17:14:59Z 2025-05 info:eu-repo/semantics/workingPaper https://repositorio.utdt.edu/handle/20.500.13098/13401 eng Working Papers Economía - Universidad Torcuato Di Tella. Departamento de Economía Argentina info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-nc-sa/4.0/deed.es 55 p. application/pdf application/pdf
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Subsidio de desempleo
Unemployment insurance
Políticas Públicas
Public Policies
Política laboral
Labour Policy
Política Fiscal
spellingShingle Subsidio de desempleo
Unemployment insurance
Políticas Públicas
Public Policies
Política laboral
Labour Policy
Política Fiscal
Herrera, Joaquín
González-Rozada, Martín
Ruffo, Hernán
The fiscal costs of unemployment insurance
topic_facet Subsidio de desempleo
Unemployment insurance
Políticas Públicas
Public Policies
Política laboral
Labour Policy
Política Fiscal
description This paper studies the fiscal costs of unemployment insurance (UI). It surveys alternative methods used in the literature to estimate UI’s impact on the government budget and compares them within a unified framework that incorporates behavioral responses, wage effects, and fiscal externalities. These methods are then applied to administrative data from Argentina. Combined with estimates of the consumption drop following unemployment, the paper evaluates the Marginal Value of Public Funds (MVPF) for UI and finds that, while results vary depending on the treatment of fiscal externalities, MVPF typically exceed one—indicating that the social benefits of marginal increases in UI outweigh their fiscal costs.
format Documento de trabajo
author Herrera, Joaquín
González-Rozada, Martín
Ruffo, Hernán
author_facet Herrera, Joaquín
González-Rozada, Martín
Ruffo, Hernán
author_sort Herrera, Joaquín
title The fiscal costs of unemployment insurance
title_short The fiscal costs of unemployment insurance
title_full The fiscal costs of unemployment insurance
title_fullStr The fiscal costs of unemployment insurance
title_full_unstemmed The fiscal costs of unemployment insurance
title_sort fiscal costs of unemployment insurance
publisher Universidad Torcuato Di Tella. Departamento de Economía
publishDate 2025
url https://repositorio.utdt.edu/handle/20.500.13098/13401
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