How viable are unemployment insurance savings accounts? : Simulation results for Slovenia
Vodopivec, Milan
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.
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