To the extent that such jobs entail higher growth and workers are risk-averse, this provides an efficiency justification for UI (Acemoglu and Shimer, 1999). The basic idea of experience-rated UI systems is to remove the implicit subsidy from low-risk to high-risk firms that is present in traditional UI systems by replacing payroll or ear-marked taxes as the main source of finance by layoff taxes. No emerging economy has an experience-rated UI system.