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Formal and Informal Social Protection in Iraq

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ERF18th_Mekkaoui_Johnson.pdf (454.4Kb)
Date
2011
Dewey
Croissance et développement économiques
Sujet
Iraq; Social protection; formal and informal insurance; risk coping mechanisms
JEL code
O53; O17; I38; D10; D81
Conference name
4th Conference of the GDRI - DREEM : "Evaluation of Economic Policies and Institutional Changes in Mediterranean Countries"
Conference date
09-2013
Conference city
Florence
Conference country
Italie
URI
https://basepub.dauphine.fr/handle/123456789/13208
Collections
  • LEDa : Publications
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Author
Johnson, Hillary
El Mekkaoui de Freitas, Najat
Type
Communication / Conférence
Item number of pages
33
Abstract (EN)
We study formal and informal insurance in Iraq using empirical data from a household survey. We study access to social security, health insurance, and retirement. Then, we examine the types of risks that Iraqi households face, and the informal coping mechanisms they use to deal with them. After studying formal and informal social protection separately, we study the relationship between the two and test the hypothesis of crowding out. We find that socio-­demographic characteristics affect formal insurance detention, the probability of a risk occurring, and the type of risk coping mechanism that a household uses. The most important determinant of receiving formal benefits is the sector of employment: public sector workers are between 83% and 84% more likely than private sector workers to have formal benefits. Poverty, the type of employment, the place of residence, the size of the household, the gender of the household head, and the education of the household impact the probability with which a household is affected by different types of risks. These socio -­‐ demographic characteristics along with the type of risk that the household faced influence the household’s choice of risk coping mechanism. We find evidence of crowding out; however, we conclude that this should not translate to a reduction in formal safety nets. Our results have many policy implications to improve access to formal insurance, reduce risks, and mitigate the negative aspects of certain informal coping mechanisms in Iraq .

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