ABSTRACT

This chapter focuses on a number of issues connected with what was referred to earlier as the social aspect of unemployment. Unemployment Insurance is seen as an income deficiency scheme, viz. as a scheme designed to relieve the human hardship caused by the interruption of earnings during the involuntary unemployment of workers. In France, where Unemployment Insurance exists mainly in the form of a large non-statutory program for industry and commerce the trend has been definitely towards more universality and less selectivity in coverage. In systems of Unemployment Insurance relying on a flat-rate structure the natural tendency of benefits to keep up with earnings is much less certain and automatic. A risk-rated contribution structure in Unemployment Insurance would tend to invoke once again the individual responsibility in matters of unemployment relief. The highly qualified worker with a low risk of unemployment but committed to relatively high contributions would appear likely to make a net loss from the scheme.