Purpose: This study is dedicated to the issue of extending unemployment insurance coverage to non-standard jobs, self-employed and youth. Statistical review shows that in Iran in 1401, about 7% of unemployed had unemployment insurance coverage, while coverage is much higher in other countries, especially among developed countries.
Method: To explore the feasibility of coverage extension, at first, the reason for the exclusion of many jobs from the coverage by the legislator was discussed that is the concern of adverse selection and moral hazard due to asymmetric information. Then, the efforts that have been made in Europe to expand the coverage is review systematically.
Findings: The experience of Europe shows that due to structural reasons, the effective coverage will remain low, and the expansion of the coverage has a huge financial burden. In fact, it can be said that parametric changes to expand unemployment insurance coverage to these groups have not been successful. In this regard, some European countries have inevitably taken help from the market and have provided the expansion of unemployment insurance coverage to non-standard jobs, self-employment or young people as voluntary participation.
Conclusion: The result is that when European countries with a hundred years of history in providing government unemployment insurance have failed to expand traditional unemployment insurance coverage and inevitably rely on personal and market motives, for developing countries like Iran, which have less history in implementation of unemployment insurance and they have less institutional power and capacity to monitor and prevent adverse selection and moral hazard, they definitely need to rely more on individual and market participation, if they want to expand coverage to non-standard jobs and self-employment.