Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-28T06:38:06.740Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alber, Jens. 1981. “Government responses to the challenge of unemployment: The development of unemployment insurance in Western Europe.” In The Development of Welfare States in Europe and America, edited by Flora, Peter. and Heidenbeimer, Arnold, Transaction Inc. Google Scholar
Baldwin, Peter. 1992. The Politics of Social Solidarity: Class Bases of the European Welfare State 1975–1975. New York: Cambridge University Press.Google Scholar
Barr, Nicholas. 1998. The Economics of the Welfare State. Palo Alto, CA: Stanford University Press.Google Scholar
Barr, Nicholas 1992. “Economic theory and the welfare State: A Survey and Interpretation.” Journal of Economic Literature 30: 741–803.Google Scholar
Bean, R. 1989. International Labour Statistics: A Handbook, Guide, and Recent Trends. London: Routledge.Google Scholar
Blaustein, Saul. 1993. Unemployment Insurance in the United States. W.E. Upjohn Institute for Employment Research.Google Scholar
Saul, Blausten, et al. 1977. An International Review of Unemployment Insurance Schemes. The W.E. Upjohn Institute for Employment Research.Google Scholar
Box-Steffensmeier, Jenet, and Jones, Bradford. 2004. Event History Modeling. Ann Arbor: University of Michigan Press.CrossRefGoogle Scholar
Chiu, H. and Karni, E. 1998. “Endogenous adverse selection and unemployment insurance.” Journal of Political Economy 106: 806–827.CrossRefGoogle Scholar
Esping-Andersen, Gosta. 1999. Social Foundations of Postindustrial Economies. New York: Oxford Univ. Press.CrossRefGoogle Scholar
Esping-Andersen, Gosta 1990. The Three Worlds of Welfare Capitalism, New York: Cambridge Univ. Press.Google Scholar
Flora, Peter, and Alber, Jens. 1981. “Modernization, Democratization, and the Development of Welfare States in Western Europe.” In The Development of Welfare States in Europe and America, edited by Flora, Peter. and Heidenbeimer, Arnold, Transaction Inc. Google Scholar
Gough, Ian, and Woods, G. 2004. Insecurity and Welfare Regimes in Asia, Africa and Latin America. New York: Cambridge University Press.CrossRefGoogle Scholar
Haggard, Stephan, and Kaufman, Robert. 2004. “Revising Social Contracts: Social Spending in Latin America, East Asia, and the Former Socialists Countries, 1980–2000.” Revista De Ciencia Politica 26(1): 2–27.Google Scholar
Haggard, Stephan, and Rudra, Nita. 2001. “Globalization, Domestic Politics, and Welfare Spending in the Developing World.” Paper presented for the annual meeting of the APSA. San Francisco, CA.Google Scholar
Heston, Alan, et al. 2002. The Penn World Table (Mark 6.1). National Bureau of Economic Research.Google Scholar
Hicks, Alexander. 1999. Social Democracy and Welfare Capitalism. Ithaca, NY: Cornell Univ. Press.Google Scholar
Evelyne, Huber and Stephens, John. 2001. Development and Crisis of the Welfare State: Parties and Policies in Global Markets. Chicago: University of Chicago Press.Google Scholar
Evelyne, Huber. 1996. “Options for Social Policy in Latin America: Neoliberal versus Social Democratic Models.” In Welfare States in Transition: National Adaptations in Global Economies, edited by Esping-Andersen, Gosta. London: Sage Publications.Google Scholar
International Labour Organization. Various years. Economically Active Population, 1950–2010. Geneva: ILO.Google Scholar
International Labour Organization Various years. Yearbook of Labour Statistics. Geneva: ILO.Google Scholar
International Labour Organization 2000. World Labor Report 2000: Income Security and Social Protection in a Changing World. Geneva: ILO.Google Scholar
Iversen, Torben, and Soskice, David. 2001. “An Asset Theory of Social Policy Preferences.” American Political Science Review 95: 875–93.CrossRefGoogle Scholar
Iversen, Torben, and Cusack, Thomas. 2000. “The Cause of Welfare State Expansion: Deindustrialization and Globalization.” World Politics 52: 313–349.CrossRefGoogle Scholar
King, Gary, et al. 2000. “Making the Most of Statistical Analyses: Improving Interpretation and Presentation.” American Journal of Political Science 44 (2): 347–61.CrossRefGoogle Scholar
Lee, Eddy. 1998. The Asian Financial Crisis: The Challenge for Social Policy. Geneva: ILO.Google Scholar
Lindert, Peter. 2004. Growing Public. Cambridge: Cambridge University Press.Google Scholar
Mares, Isabela. 2003. Politics of Social Risks. Cambridge: Cambridge University Press.Google Scholar
Meltzer, Allan, and Richard, Scott. 1981. “A Rational Theory of the Size of Government.” Journal of Political Economy 89: 914–927.CrossRefGoogle Scholar
Moene, Karl, and Wallerstein, Michael. 2001. “Inequality, Social Insurance and Redistribution.” American Political Science Review 95: 859–874.CrossRefGoogle Scholar
Korpi, Walter. 1989. “Power, Politics, and State Autonomy in the Development of Social Citizenship.” American Sociological Review 54: 309–28.CrossRefGoogle Scholar
OECD. 1988. Employment Outlook 1988. Paris: OECD.Google Scholar
O'Leary, Christopher, and Wander, Stephen. 1997. Unemployment Insurance in the United States: Analysis of Policy Issues. W.E. UPJOHN Institute for Employment Research.CrossRefGoogle Scholar
Pierson, Christopher. 1998. Beyond the Welfare State: The New Political Economy of Welfare. Polity Press.Google Scholar
Michael, Piore. 1987. “Historical Perspectives and the Interpretation of Unemployment.” Journal of Economic Literature 25: 4, 1834–1850.Google Scholar
Polanyi, Karl. 1944. The Great Transformation: The Political and Economic Origins of Our Time. Boston: Beacon Press.Google Scholar
Przeworski, Adam. 2003. States and Markets: A Primer in Political Economy. New York: Cambridge University Press.Google Scholar
Przeworski, Adam, et al. 2000. Democracy and Development: Political Institutions and Well-Being in the World, 1950–1990. New York: Cambridge University Press.CrossRefGoogle Scholar
Rothstein, Bo. 2001. “The Universal Welfare State as a Social Dilemma.” Rationality and Society 13(2): 213–233.CrossRefGoogle Scholar
Rothstein, Bo 1995. “Labor-market Institutions and Working-class Strength.” In Structuring Politics, edited by Steinmo, Sven et al. New York: Cambridge Univ. Press.Google Scholar
Social Security Administration. 2003. Social Security Programs Throughout the World, D.C. Washington: US Government Printing Office.Google Scholar
Tang, Kwong-Leung. 2000. Social Welfare Development in East Asia. New York: Palgrave.CrossRefGoogle Scholar
Therbon, Goran. 1977. “The Rule of Capital and the Rise of Democracy.” New Left Review 103: 113–114.Google Scholar
Toft, Christian. 1995. “State Action, Trade Unions, and Voluntary Unemployment Insurance in Great Britain, Germany, and Scandinavia, 1900–1934.” European Economic Review 39: 565–574.CrossRefGoogle Scholar
Western, Bruce. 1997. Between Class and Market: Postwar Unionization in the Capitalist Democracies. Princeton, NJ: Princeton Univ. Press.CrossRefGoogle Scholar
Wilensky, Harold. 1975. The Welfare State and Equality. Berkeley: University of California Press.Google Scholar
Whiteside, Noel. 1980. “Welfare Legislation and the Unions during the First World War.” Historical Journal 23: 857–74.Google Scholar
World Bank. 2000. World Development Indicators 2000. CD-ROM. D. C. Washington: World Bank.Google Scholar
Zorn, Christopher. 2000. “Modeling Duration Dependence.” Political Analysis 8: 367–380.CrossRefGoogle Scholar