Analysis of the use of benefits under Chilean unemployment insurance

Abstract

This paper intends to characterize the take-up behavior of benefits in the Chilean Unemployment Insurance scheme. Using administrative data, we observe that only 35% of eligible individuals apply for some of the benefits covered by the program. The results suggest that an important part of the low take-up rate stems from rational decisions of well-informed agents. However, variables that seek to measure the available information to the participant show a significant and positive correlation with the take-up behavior.