4 February, 2025
The high informality rate in developing countries means that many more workers lack coverage against significant risks, such as unemployment, illness and poverty in old age. Since the expansion of the Bismarckian system of including informal workers involves many challenges, several countries have implemented non-contributory social insurance programs to extend coverage. Nonetheless, this has contributed to the segmentation of the labor market, and such programs are not likely to be financially sustainable.
This study reviews the economic literature that addresses the expansion of social security programs, and summarizes the main policy conclusions. It is based on the international evidence on the design of social security systems, and the innovations and resulting impact on coverage. It also provides general design principles that can be applied to unemployment, medical insurance and pension benefits.
4 February, 2025
31 January, 2025
18 December, 2024