this chapter examines the targeting and coverage of these benefits and their incentive effects and role in the labour market the chapter first considers the employment insurance el system focusing mainly on the cash benefits provided a distinctive characteristic is that contributions to the regular el system are not payable on earnings from some types of nonregular work in particular until any work expected to last for less than a year japan provides the clearest oecdcountry example of an unemployment insurance ui system that allows for the continuing existence of an uncovered sector and its detailed provisions merit careful study by any other country that is considering the introduction of a ui system that may at first cover only workers in relatively stable and longterm employment although japan s recent reforms aim to extend coverage to shortterm employment the chapter then examines the management of public assistance with a focus on the entitlement features and management practices that keep the benefit caseload particularly low