Social Insurance: From Causal Evidence to Policy Design

Course overview

In a world characterized by economic and political uncertainty, population ageing, and increasingly tight public finances, the design and sustainability of social insurance programs is a first-order policy priority. This course examines how economic theory and causal evidence can inform the design of social insurance programs, including unemployment insurance, health insurance and pension systems.

For graduate students and researchers, the course provides a framework for evaluating empirical research and developing new research questions. For policy professionals, it shows how evidence on consumption, employment, health, and saving can inform program design. Particular attention is paid to what causal estimates reveal about the benefits and costs of a policy, and which additional assumptions are needed to draw welfare conclusions.

Participants learn how empirical estimates can be used to evaluate welfare and inform optimal policy through the lens of economic models. Applying a common framework across unemployment insurance, health insurance, and pensions reveals both shared economic trade-offs and the importance of institutional details.