In this case, the reduction in severance pay is compensated by increased UBs which can be financed through general taxation or payroll taxes. The main benefit of UISAs is their potential to provide support to liquidity-constrained unemployed in their job search, while limiting moral-hazard effects associated with OECD-style systems of unemployment insurance. By allowing workers to run down their personal saving accounts during periods of unemployment, workers internalise the cost of unemployment benefits, thus strengthening the incentives of the employed to prevent job loss and those of the unemployed to return to work quickly (Orszag and Snower, 1999).