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Income risk and the benefits of social insurance : evidence from Indonesia and the United States

Author: Raj Chetty; Adam Looney; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2005.
Series: Working paper series (National Bureau of Economic Research), no. 11708.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
"This paper examines the welfare consequences of social safety nets in developing economies relative to developed economies. Using panel surveys of households in Indonesia and the United States, we find that food consumption falls by approximately ten percent when individuals become unemployed in both countries. This finding suggests that introducing a formal social insurance program would have small benefits in  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Raj Chetty; Adam Looney; National Bureau of Economic Research.
OCLC Number: 62169925
Notes: October 2005.
Title from first page of PDF document.
Description: 1 online resource (20, [10] pages) : illustrations (some color).
Series Title: Working paper series (National Bureau of Economic Research), no. 11708.
Responsibility: Raj Chetty, Adam Looney.

Abstract:

"This paper examines the welfare consequences of social safety nets in developing economies relative to developed economies. Using panel surveys of households in Indonesia and the United States, we find that food consumption falls by approximately ten percent when individuals become unemployed in both countries. This finding suggests that introducing a formal social insurance program would have small benefits in terms of reducing consumption fluctuations in Indonesia. However, in contrast with households in the U.S., Indonesians use costly methods such as reducing human capital investment to smooth consumption. The primary benefit of social insurance in developing countries may therefore come not from consumption smoothing itself but from reducing the use of inefficientsmoothing methods"--National Bureau of Economic Research web site.

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