Activation and employment support policies in OECD countries. An overview of current approaches

Table 1 Generosity of unemployment benefits at different points during an unemployment spell

	Year1	Year2	Year3	Year4	Year5	Five year average
Belgium	71.4	64.5	64.5	64.5	64.5	65.8
Ireland	63.8	63.9	63.9	63.9	63.9	63.9
Austria	62.1	58.9	58.9	58.9	58.9	59.6
New Zealand	49.5	49.5	49.5	49.5	49.5	49.5
Australia	47.4	47.4	47.4	47.4	47.4	47.4
Portugal	76.	76.1	54.4	24.1	4.6	47.1
Germany	64.4	47.5	41.3	35.0	35.0	44.7
France	66.9	66.9	28.8	28.8	28.8	44.0
Finland	61.7	58.5	31.8	31.8	31.8	43.1
Sweden	60.2	58.7	55.6	19.2	7.7	40.3
Norway	73.2	73.5	18.0	17.5	17.5	39.9
Spain	68.4	64.7	23.5	23.5	12.8	38.5
Iceland (b)	59.3	54.6	54.6	7.7	7.7	36.8
Denmark	74.1	74.1	9.6	9.6	9.6	35.4
Netherlands	73.0	61.2	5.3	5.3	5.3	30.0
United Kingdom	31.2	29.5	29.5	29.5	29.5	29.8
Canada	62.4	17.1	17.1	17.1	17.1	26.2
Switzerland	83.0	41.5	0.0	0.0	0.0	24.9
Luxembourg	85.5	9.1	9.1	9.1	9.1	24.4
Slovenia	56.8	11.8	11.8	11.8	11.8	20.8
United States	51.0	46.1	0.0	0.0	0.0	19.4
Hungary	44.4	10.1	10.1	10.1	10.1	17.0
Poland	46.9	8.6	8.6	8.6	8.6	16.2
Slovak Republic	37.6	10.5	10.5	10.5	10.5	15.9
Japan	48.1	5.5	5.5	5.5	5.5	14.0
Estonia	50.1	4.6	4.6	4.6	4.6	13.7
Greece	46.8	8.9	4.0	4.0	4.0	13.6
Czech Republic	30.0	8.5	8.5	8.5	8.5	12.8
Israel	44.3	2.6	2.6	2.6	2.6	11.0
Italy	45.1	0.0	0.0	0.0	0.0	9.0
Turkey	40.6	0.0	0.0	0.0	0.0	8.1
Korea	29.3	0.6	0.6	0.6	0.6	6.3
OECD (average)	56.4	35.5	22.8	19.0	17.7	30.3

Net replacement rates in percent, 2010 policy parameters ^a.
a. Countries shown in descending order of the five-year average. Calculations consider cash incomes (including family benefit, which may be available regardless of employment status or income) as well as income taxes and mandatory social security contributions payable by workers. To focus on the role of unemployment benefits, no social assistance or housing-related benefits are considered (see Figure 1 for “all-in” replacement rates including these safety-net benefits) and any entitlements to severance payments are also excluded. Net replacement rates are for a prime-age worker (aged 40) with a “long” and uninterrupted employment record and are averages over 12 months, four different stylised family types (single and one-earner couples, with and without children) and two earnings levels (67% and 100% of average full-time wage).
b. Excluding the retroactive extension of unemployment benefits from three to four years which was passed in December 2010.
Source: OECD tax-benefit models (http://www.oecd.org/els/social/workincentives).