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Institutional Origins of Unemployment Compensation: An Empirical Analysis of the Developing World, 1946–2000

Published online by Cambridge University Press:  20 January 2017

Wonik Kim
Wonik Kim*
Affiliation:
Louisiana State University
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Abstract

Why do some countries institutionalize a social program compensating the unemployed while others do not? My main argument is that the choice to have an unemployment insurance program is a function of 1) the distribution of unemployment risks within a country and 2) political processes through which demands for insurance are realized. The distribution of industrial-specific risks and workers' employment status are the driving force in shaping workers' demands. In developing countries, these demands are more likely to be realized under democratic regimes. An event history model for 102 developing countries from 1946 to 2000 is used to test the arguments.

Keywords

the welfare stateunemployment compensationunemployment riskpolitical regimesocial insurancedeveloping countries.
Type
Article
Information
Business and Politics , Volume 8 , Issue 1 , April 2006 , pp. 1 - 28
Copyright
Copyright © V.K. Aggarwal 2006 and published under exclusive license to Cambridge University Press 

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