International Evidence on Unemployment Compensation Prevalence and Costs

Research Report

International Evidence on Unemployment Compensation Prevalence and Costs

June 1, 2004

Abstract

This paper examines determinants of the presence of unemployment compensation (UC) programs across 150 countries each with a population of 1 million or more persons in 1999. The presence of UC is strongly linked to income (GDP per-capita) and it also varies systematically across eight major regions of the world. UC costs in the 1990s are examined for a set of 32 countries. UC costs are highest in countries that are members of the Organization of Economic Cooperation and Development (OECD).

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