Unemployment insurance and income protection in Ecuador: an application of ECUAMOD

Abstract

This note describes a method to assess the effect of unemployment insurance reforms in ECUAMOD, the tax-benefit model for Ecuador. The note is based on ECUAMOD version 1.4 and the Net Replacement Rate add-on built in the model to simulate transitions from work to unemployment in the underlying microdata. The add-on is used to assess the effect of the introduction of the Unemployment Insurance (UI) benefit in Ecuador in 2016.