This article reconsiders the behavioural effects of replacing the existing unemployment insurance system with unemployment accounts (UAs). Under this alternative system, workers are required to save a fraction of their wage in special accounts, whereas the unemployed are allowed to withdraw...

The weaknesses of traditional policies for dealing with unemployment shocks have placed the reform of social insurance programs at the center of the public policy debate. Unemployment insurance saving accounts (UISAs) have been proposed as an instrument to protect workers from the loss in...