The Newly Unemployed and the UIF Take-up Rate in the South African Labour Market

Working Paper

2012-07

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University of Cape Town


Development Policy Research Unit


University of Cape Town

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Development and Poverty Research Unit Working Paper Development Policy Research Unit Working Paper 12/147

Abstract
This paper investigates the take-up rate or claim-waiting rate of the unemployed under the South African Unemployment Insurance Fund (UIF) system. The goal is to identify disincentive effects that income replacement rates (IRR) and accumulated credits may have on the claimant‟s behaviour in terms of their claim waiting period rate (or how quickly they apply for UIF benefits).
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